Entergy Sees First-Quarter Earnings Topping Forecasts

Entergy

(ETR) - Get Report

sees first-quarter pro forma earnings above estimates, but the company expects a large special charge that will hurt reported earnings.

On a pro forma basis, the energy provider expects to post earnings per share of at least 76 cents, up slightly from 75 cents in the year-ago quarter. Analysts polled by Thomson Financial/First Call had been expecting 69 cents a share.

The company's reported earnings, however, will be "substantially lower" due to a large special charge relating to the discontinuation of Greenfield power plant development. The charge could be as large as $1.15 to $1.35 a share, but some of it may be taken later in the year, depending on accounting rules.

According to a press release, Entergy's utility unit results will be lower than the year-ago quarter due to a slowing economy, but the nuclear division is expected to post higher results due to an acquisition from last September. The commodity services division is also expected to post higher results as compared to the first quarter of 2001.

Shares of Entergy closed at $45.28 Wednesday.