EnergySolutions Rises on Nuclear Outlook

The radioactive-waste disposal company's stock rose $1.83, or 10.3 percent, to close at $19.55 Tuesday. The broad markets made strong gains overall due to expectations that the Federal Reserve will slash its interest rate.

EnergySolutions said it swung to a fourth-quarter loss of 11 cents per share as higher costs outweighed a boost in revenue from an acquisition. Analysts were expecting a profit of 3 cents per share, according to a Thomson Financial poll.

However, Chief Executive R. Steve Creamer said the nuclear-services sector "remains robust" and that there are "significant opportunities" for growth in all of EnergySolutions' business segments.

The Salt Lake City-based company issued an adjusted earnings outlook far above analyst expectations. It expects an adjusted per-share profit of 89 cents to 94 cents in 2008, compared with analysts' range of 69 to 77 cents.

Analyst estimates typically exclude special items. Including asset write-downs and related taxes, EnergySolutions expects earnings of 69 cents to 74 cents per share.

Piper Jaffray analyst Charles Fishman maintained a "Buy" rating on EnergySolutions stock, saying a "rebirth of the nuclear industry" is likely to occur in the U.S.

EnergySolutions has "positioned itself to capitalize on this trend better than any other industry competitor," Fishman wrote in a note Tuesday.

Wedbush Morgan Securities analyst Al Kaschalk added that opportunities overseas could provide further stock value. EnergySolutions is "aggressively" pushing for U.S. regulatory approval to import 20,000 tons of waste, Kaschalk said in a note Tuesday.