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UPDATE: Constellation Energy Profit Drops |
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| Wednesday October 31st, 2007 / 23h28 |
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By Jim Jelter
SAN FRANCISCO (Dow Jones) -- Constellation Energy Group Inc., the parent of Baltimore Gas and Electric Co., reported a 22% lower third-quarter profit Wednesday, with a slight improvement in its merchant power business clipped by weaker results for its retail and power sales and higher operating expenses.
For the three months ended Sept. 30, Baltimore-based Constellation (CEG) posted net income of $251.4 million, or $1.38 a share, down from $324.4 million, or $1.79 a share, earned in the same period last year. Adjusted to exclude one-time items, hedging and synthetic fuel operations, earnings totaled $1.45 a share, a penny lower than adjusted earnings for the third quarter of 2006.
Revenue for the quarter rose 6.8% to $5.76 billion from $5.39 billion.
Analysts surveyed by Thomson Financial had forecast the company would hand in earnings of $1.53 a share on revenue of nearly $6.07 billion.
The company raised the lower end of its 2007 earnings range to $4.45 to $4.65 a share from $4.30 to $4.65 a share, which is in line with the $4.55 a share analysts are looking for.
For 2008, Constellation Energy said it expects to be in the "middle to upper half" of its previously announced earnings range of $5.25 to $5.75 a share. And for 2009, the company anticipates generating earnings growth of more than 10% over 2008.
Constellation also announced plans to buy back $1 billion worth of its common stock. Under the program approved by the board, the company said it aims to accelerate the repurchase of $250 million, with the remainder to be bought over 24 months.
Shares of Constellation Energy fell 1% to close at $94.70. So far this year the stock is up nearly 38% compared with a 17% increase for the Dow Jones Utilities Average (26099800) .
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| Wednesday October 31st, 2007 / 23h28 |
Source : Dowjones Business News |
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