Jefferies Cuts Price Target on Progress Energy (PGN), Ridding the Winds of the Weather
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Price: $0.15 --0%
Rating Summary:
0 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reiterating its Hold rating on shares of Progress Energy (NYSE: PGN) while lowering its price target from $48.50 to $47.
The company reported strong Q2 earnings with EPS of $0.71, which topped the firm's estimate of $0.63 and the Street's of $0.64. The firm highlights that the upside was driven by the weather that accounted for $0.08 per share this past quarter.
PGN reaffirmed its 2011 earnings guidance of $3.00-$3.20.
The firm notes that the second status meeting with a pre-hearing officer at the Florida PSC is scheduled for August 8.
The merger remains on track to be closed by the end of 2011 with a special shareholder meetings scheduled for August 23 and a hearing in North Carolina is scheduled for September 20.
Jefferies is increasing its 2011 EPS estimate by $0.05 to $3.15 and is lowering its 2012 and 2013 estimates by $0.03 to $3.15 and $3.34.
An analyst at the firm comments, "Overall, the company expects sales to pick up in 2H11, but still be weaker than the annualized forecast of 0.8 percent in the Carolinas and 0.7 percent in Florida. The company noted that hot July weather should help Q3 results."
For more ratings news on Progress Energy click here and for the rating history of Progress Energy click here.
Shares of Progress Energy closed at $45.38 yesterday. As of the end of June, the company has spent a total of $203 million on repair costs and $396 million on replacement power costs.
The company reported strong Q2 earnings with EPS of $0.71, which topped the firm's estimate of $0.63 and the Street's of $0.64. The firm highlights that the upside was driven by the weather that accounted for $0.08 per share this past quarter.
PGN reaffirmed its 2011 earnings guidance of $3.00-$3.20.
The firm notes that the second status meeting with a pre-hearing officer at the Florida PSC is scheduled for August 8.
The merger remains on track to be closed by the end of 2011 with a special shareholder meetings scheduled for August 23 and a hearing in North Carolina is scheduled for September 20.
Jefferies is increasing its 2011 EPS estimate by $0.05 to $3.15 and is lowering its 2012 and 2013 estimates by $0.03 to $3.15 and $3.34.
An analyst at the firm comments, "Overall, the company expects sales to pick up in 2H11, but still be weaker than the annualized forecast of 0.8 percent in the Carolinas and 0.7 percent in Florida. The company noted that hot July weather should help Q3 results."
For more ratings news on Progress Energy click here and for the rating history of Progress Energy click here.
Shares of Progress Energy closed at $45.38 yesterday. As of the end of June, the company has spent a total of $203 million on repair costs and $396 million on replacement power costs.
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