Utilities Up As Traders Hedge On Rate Views - Utilities Roundup

Features Dow Jones Newswires

Shares of power-plant operators rose as traders hedged their bets on the outlook for interest rates. New revenue recognition standards imposed by an international accounting body could boost some earnings for some corporations, including at least one in the power-production sector, according to one brokerage. "While the overall impact will vary greatly by industry, in general the new provisions will accelerate the timing of revenue recognition," said analysts at brokerage Morgan Stanley, in a note to clients. "The new rules will directly impact most of the financial metrics investors focus on. For instance, First Solar was early to adopt the standard on Jan. 1, 2017 and highlighted that the new revenue provisions would have increased their first quarter 2016 earnings by about 10%."

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-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

May 18, 2017 16:47 ET (20:47 GMT)