AES to Announce Q2 Earnings: Here's What You Need to Know
The AES Corporation AES is slated to report second-quarter 2023 results on Aug 3, after market close.
Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average surprise of 6.14%.
Factors to Note
In the second quarter, AES’ service territories witnessed a mostly warmer-than-normal weather pattern accompanied with a drought-like situation. Such a weather pattern is expected to have boosted electricity demand for cooling purposes during the summer months. This must have favorably contributed to the company’s top-line performance in the soon-to-be-reported quarter.
The AES Corporation Price and EPS Surprise
The AES Corporation price-eps-surprise | The AES Corporation Quote
However, a few tornadoes and thunderstorm affected some parts of the company’s service areas, which might have led to outages for its customers. This, in turn, is likely to have had some impact on AES’ overall revenues in the quarter to be reported.
The Zacks Consensus Estimate for revenues is pegged at $2.88 billion, indicating a decline of 6.6% year over year.
The tornadoes and thunderstorms during the second quarter might have had resulted in infrastructural damage for this electricity provider, thereby increasing its quarterly operating expenses. This, along with lower contributions from LNG sales, higher interest expense from incremental debt, higher rates on its revolving credit facility and a marginally higher tax rate this year, is expected to have hurt the company’s bottom line.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 25 cents per share, indicating a year-over-year deterioration of 26.5%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for AES this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: AES’ Earnings ESP is -12.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AES currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Atmos Energy ATO has an Earnings ESP of +6.88% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter sales is pegged at $1.01 billion, implying growth of 24.2% year over year.
ATO has a four-quarter average earnings surprise of 4.92%. The consensus estimate for earnings is pegged at 95 cents per share.
Allete ALE has an Earnings ESP of +2.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at 78 cents per share.
The consensus estimate for sales is pinned at $378.5 million, indicating a year-over-year increase of 1.5%. The company has a four-quarter average negative earnings surprise of 10.64%.
Public Service Enterprise Group PEG has an Earnings ESP of +0.66% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for Public Service Enterprise’s second-quarter revenues is pegged at $2.03 billion, implying a decline of 2.4% year over year.
The consensus mark for earnings is pinned at 61 cents per share. The company has a four-quarter average earnings surprise of 4.33%.
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Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
