Calpine Misses, Guides Lower

The power company's fourth-quarter disappointment comes after it canceled a bond offering.
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Calpine

(CPN)

shares fell Thursday, after the giant power producer posted a fourth-quarter profit driven by accounting changes and asset sales.

The San Jose, Calif.-based company, which canceled a $2.3 billion debt offering earlier this week, had net income of $119.6 million, or 29 cents a share, vs. a loss of $25.2 million, or 7 cents a share, a year ago. Revenue rose to $1.92 billion from $1.87 billion in the year-ago period. Operating cash flow fell 57% to $114.8 million.

Income before the effects of discontinued operations and accounting changes was a loss of 15 cents a share. Analysts were expecting a loss of 11 cents a share, according to Thomson One Analytics,

The results include gains of 38 cents a share relating to accounting changes and 10 cents a share from asset sales. The company also recorded a charge of 14 cents a share, which included impairment costs, asset writedowns, and the termination of long-term service contracts.

Calpine also offered earnings guidance, saying it expects to break even in 2004. The consensus estimate is 3 cents a share.

After canceling the bond offering, the company said it plans to exploredifferent financing options to address a big debt payment, due in November,that looms as a possible bankruptcy threat.

Calpine shares fell 17 cents, or 3%, to $5.39.