U.S. Markets open in 4 hrs 36 mins

AES Corp (AES) Q1 Earnings Miss Estimates, Revenues Down Y/Y

Zacks Equity Research

AES Corporation’s AES first-quarter 2019 adjusted earnings of 28 cents per share missed the Zacks Consensus Estimate of 30 cents by 6.7%. However, earnings were in line with the year-ago quarter’s figure.

 

Barring one-time adjustment, the company delivered GAAP earnings of 23 cents per share in the reported quarter compared with $1.03 in the prior-year period.

 

Highlights of the Release

 

AES Corp generated total revenues of $2.65 billion in the first quarter, down 3.3% year over year. The top line also lagged the Zacks Consensus Estimate of $2.72 million by 2.6%.

 

Total cost of sales was $2,064 million in the first quarter, down 0.96% year over year. General and administrative expenses were $46 million, 17.9% lower than the year-ago quarter’s $56 million.

 

Operating income stood at $586 million, down from $656 million in the year-ago period.

 

Interest expenses summed $265 million, down from $281 million in the year-earlier period.

 

The company signed long-term contracts for 494 MW of renewable capacity, increasing backlog to 6.2 GW. It also signed a 12-year agreement to sell up to 18 TBTU of LNG annually in the Caribbean, beginning 2020. 

 

During the quarter, AES Corp also announced a $100-million incremental annual run rate cost-savings target, which is to be realized by 2022 from digital initiatives.
 

The AES Corporation Price, Consensus and EPS Surprise
 

The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote

Financial Condition

AES Corp reported cash and cash equivalents of $1,426 million as of Mar 31, 2019, compared with $1,166 million as of Dec 31, 2018.

Non-recourse debt totaled $14,550 million as of Mar 31, 2019, up from $13,986 million as of Dec 31, 2018.

 

In the first quarter of 2019, cash from operating activities was $690 million compared with the year-ago figure of $515 million.

 

Total capital expenditures during the first quarter amounted to $504 million, which increased from $494 million incurred during the year-ago quarter.

 

Guidance

 

For 2019, AES Corp reaffirmed its view for adjusted earnings of $1.28-$1.40 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $1.34, which is the mid-point of the company’s guided range.

 

AES Corp also reaffirms its 2019 Parent Free Cash Flow expectation of $700-$750 million and its average annual growth rate target of 7-9% through 2022.

 

Zacks Rank

 

AES Corp currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Recent Utility Releases

 

FirstEnergy Corporation FE, which carries a Zacks Rank #2, delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

 

NextEra Energy, Inc. NEE, which carries a Zacks Rank #3, reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

 

DTE Energy Company DTE, which carries a Zacks Rank #2, reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

 

Radical New Technology Creates $12.3 Trillion Opportunity

 

Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.

 

Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.

 

See the 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
FirstEnergy Corporation (FE) : Free Stock Analysis Report
 
DTE Energy Company (DTE) : Free Stock Analysis Report
 
The AES Corporation (AES) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.