2/9/2010- Morgan Stanley analysts adjusted their 2010, 2011, and 2012 EPS estimates for Allegheny Energy (NYSE:AYE) after the company reported Q4 and fiscal 2009 results.

Analysts Greg Gordon and William Appicelli said, "On February 5, AYE reported Q4 and FY '09 EPS of $0.66 and $2.33 vs. our estimate of $0.53 and $2.20, respectively, although a portion of the beat was related to a non-recurring tax item. The outlook for 2010 looks modestly improved, with higher expected generation output and a stronger cash flow profile, driving implied EPS guidance to $2.40 from $2.25."

Morgan Stanley now sees fiscal 2010 EPS of $2.40, up from $2.25 and fiscal 2011 EPS up modestly at $2.50. The bank lowered its 2012 EPS to $1.95 due to lower energy and capacity pricing.

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