Reliant Shares Jump on Earnings Report

Reliant Energy Inc. and unregulated subsidiary Reliant Resources said quarterly earnings for each fell by about 25%, but both beat Wall Street expectations and saw their battered shares surge sharply as a result.

Both Houston-based firms said their earnings fell largely due to sluggish wholesale natural gas and power markets and mild weather that reduced electricity demand.

But bargain-hunting investors drove them both up on the NYSE. Reliant Energy shares rose 63%, or $3.40, to $8.80, while Reliant Resources’ gained 52%, or $1.78, to $5.18.

Reliant Energy reported net income of $236 million, or 79 cents a share, far exceeding analysts’ estimates of 51 cents, as revenue slipped nearly 5% to $9.79 billion.