Earnings Estimates Reduced On Entergy

Entergy Corporation ETR is having FY2011-FY2013 earnings estimates lowered by Oppenheimer due to additional hedges placed in the quarter that elicited lower revenues. In the report, Oppenheimer writes "Our new 2011-2013 EPS estimates are $6.53, $6.21 and $6.25, down from $6.74, $6.53 and $6.52, respectively. Our reduced earnings outlook is a result of the declining forward power curves and higher nuclear operating and maintenance (O&M) estimates. Year-to-date, nuclear O&M has increased 24% over 2009. We have raised our O&M expense estimates as Entergy expects spending pressure to continue through 2011. We also expect Nuclear Regulatory Commission (NRC) fees to continue to pressure O&M during the relicensing process. We are reducing our price target to $80 from $83 as a result the lower earnings outlook." Oppenheimer maintains its Perform rating but has lowered the price target from $83 to $80. Entergy Corporation closed Friday at $74.59.