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AES Corp (AES) Q2 Earnings Beat Estimates, Revenues Down Y/Y

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Zacks Equity Research
·3 min read
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AES Corporation’s AES second-quarter 2020 adjusted earnings of 25 cents per share beat the Zacks Consensus Estimate of 23 cents by 8.7%. However, earnings fell 3.8% from the year-ago quarter’s 26 cents per share.

Barring a one-time adjustment, the company incurred GAAP losses of 13 cents per share in the reported quarter against the GAAP earnings of 2 cents in the prior-year period.

Highlights of the Release

AES Corp. generated total revenues of $2,217 million in the second quarter, down 10.7% year over year. The top line also lagged the Zacks Consensus Estimate of $2,498 million by 11.2%.
 
Total cost of sales was $1,693 million in the second quarter, down 14.5% year over year. General and administrative expenses were $40 million, 18.4% lower than the year-ago quarter’s $49 million.

Operating income stood at $524 million, up 4.4% from $502 million in the year-ago period.
 
Interest expenses summed $218 million, down 20.1% from $273 million in the year-earlier period.

The AES Corporation Price, Consensus and EPS Surprise

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

The AES Corporation price-consensus-eps-surprise-chart | The AES Corporation Quote

Financial Condition

AES Corp. reported cash and cash equivalents of $1,417 million as of Jun 30, 2020, compared with $1,029 million as of Dec 31, 2019.

Non-recourse debt totaled $15,639 million as of Jun 30, 2020, up from $14,914 million as of Dec 31, 2019.

In the second quarter of 2020, cash from operating activities was $447 million compared with the year-ago quarter’s $324 million.

Total capital expenditures during the second quarter amounted to $386 million, which declined from $566 million incurred in the year-ago quarter.

Guidance

For 2020, AES Corp. has reaffirmed its EPS guidance of $1.32-$1.42. The Zacks Consensus Estimate for 2020 earnings is pegged at $1.37, which lies at the midpoint of the company’s guidance range.

AES Corp. also reaffirms its 2020 Parent Free Cash Flow expectation of $725-$775 million and the average annual growth rate target of 7-9% through 2022.

Zacks Rank

AES Corp. currently has a Zacks Rank #5 (Strong Sell).

Recent Utility Releases

CMS Energy Corporation CMS, carrying a Zacks Rank #2 (Buy), reported second-quarter 2020 adjusted earnings per share (EPS) of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FirstEnergy Corporation FE, carrying a Zacks Rank #3 (Hold), delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

NextEra Energy NEE, carrying a Zacks Rank #3, reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

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