Published February 18, 2011
Calpine (CPN) said Friday its fourth-quarter loss narrowed thanks to asset sales and a tax benefit, but the company’s revenue continues to sink.
The Houston-based wholesale power company said it lost $24 million, or 5 cents a share, last quarter, compared with a deeper loss of $43 million, or 9 cents a share, a year earlier. Revenue slipped 4.7% to $1.47 billion.
Analysts had called for EPS of 9 cents on $1.34 billion in revenue.
Despite the red ink, Calpine stood by its 2011 EPS guidance for adjusted EBITDA of $1.7 billion to $1.8 billion on recurring free cash flow of $440 million to $540 million.
“We increased market share despite significant challenges posed by the overall economic environment and related impacts on power markets,” CEO Jack Fusco said in a statement. “The combination of our ability to execute, mounting optimism on economic recovery and increasing environmental pressure on the country’s aging power generation fleet should trend towards even greater utilization of our modern, clean, efficient natural gas-fired plants.”
Shares of Calpine fell 1% to $14.55, cutting into the stock’s 2011 gain of just over 10%.