USEC Beats Estimates By $0.03

Jefferies & Co. has published a research report on USEC Inc.

after the company reported 3Q earnings that exceeded estimates by $0.03. In the report, Jefferies writes "We expect quarterly results to be overshadowed by structural issues: 1) update on the ACP process: if USEC's DOE loan guarantee application is approved, financial closing should take place in 1H11 and initial commercialization would then take another 18-24 months, followed by 30-36 months to reach full capacity at ~11,500 machines vs. 65 by year-end and 40 currently; 2) cash burn rate; 3) prospect for benefits from underfeeding; 4) outlook for electricity cost in Q4 and 2011; and 5) update on potential strategic investments." Jefferies maintains its Hold rating and $5 price target. USEC Inc. closed yesterday at $5.52.