The AES Corp (AES) Q3 2023 Earnings: Adjusted EPS Expected to be in Top Half of Guidance Range
The AES Corp (NYSE:AES) expects its full-year 2023 adjusted EPS to be in the top half of the guidance range of $1.65 to $1.75.
The company's Q3 2023 net income was $291 million, compared to $446 million in Q3 2022.
AES has signed new contracts for 3.7 GW of renewables in 2023 and is on track to complete construction of 3.5 GW of renewables in 2023.
The company has secured its full-year 2023 asset sales target with the agreement to sell minority stakes in businesses in the Dominican Republic and Panama for $190 million.
On November 2, 2023, The AES Corp (NYSE:AES) released its Q3 2023 earnings report. The company reported a Q3 2023 diluted EPS of $0.32, compared to $0.59 in Q3 2022. The Q3 2023 adjusted EPS was $0.60, compared to $0.63 in Q3 2022. The company's Q3 2023 net income was $291 million, a decrease from $446 million in Q3 2022. However, the Q3 2023 adjusted EBITDA was $990 million, an increase from $931 million in Q3 2022.
Financial Highlights and Outlook
The AES Corp (NYSE:AES) has reaffirmed its 2023 guidance for adjusted EBITDA of $2,600 to $2,900 million. The company also reaffirmed its annualized growth target of 17% to 20% excluding the Energy Infrastructure SBU through 2027, off a base of 2023 guidance. With a year-to-date adjusted EPS of $1.03, the company now expects its full-year adjusted EPS to be in the top half of the guidance range of $1.65 to $1.75.
Strategic Accomplishments
The AES Corp (NYSE:AES) has signed new contracts for 3.7 GW of renewables in 2023 and is on track to complete construction of 3.5 GW of renewables in 2023. The company has also agreed to sell minority stakes in businesses in the Dominican Republic and Panama for $190 million, securing its full-year 2023 asset sales target.
Q3 2023 Financial Results
The company's Q3 2023 net income was $291 million, a decrease of $155 million compared to Q3 2022. This decrease was primarily due to lower contributions from LNG transactions at the Energy Infrastructure Strategic Business Unit (SBU), partially offset by favorable contributions at the Utilities, Renewables, and New Energy Technologies SBUs.
Guidance and Expectations
The AES Corp (NYSE:AES) is reaffirming its 2023 guidance for adjusted EBITDA of $2,600 to $2,900 million. The company now expects its full-year 2023 adjusted EPS to be in the top half of the guidance range of $1.65 to $1.75. The company's 2023 guidance is based on foreign currency and commodity forward curves as of September 30, 2023.
Explore the complete 8-K earnings release (here) from The AES Corp for further details.
This article first appeared on GuruFocus.
