U.S. markets close in 3 hours 51 minutes
  • S&P 500

    3,849.05
    +19.71 (+0.51%)
     
  • Dow 30

    31,221.39
    -180.62 (-0.58%)
     
  • Nasdaq

    13,324.74
    +205.31 (+1.56%)
     
  • Russell 2000

    2,205.15
    +4.98 (+0.23%)
     
  • Crude Oil

    62.23
    -1.30 (-2.05%)
     
  • Gold

    1,715.60
    -59.80 (-3.37%)
     
  • Silver

    26.23
    -1.45 (-5.26%)
     
  • EUR/USD

    1.2086
    -0.0100 (-0.82%)
     
  • 10-Yr Bond

    1.5010
    -0.0170 (-1.12%)
     
  • GBP/USD

    1.3930
    -0.0083 (-0.59%)
     
  • USD/JPY

    106.6800
    +0.4500 (+0.42%)
     
  • BTC-USD

    48,312.07
    -2,470.86 (-4.87%)
     
  • CMC Crypto 200

    968.97
    +35.84 (+3.84%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

AES Corp. (AES) to Report Q3 Earnings: What's in the Cards?

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

The AES Corporation AES is scheduled to release third-quarter 2020 results on Nov 6, before the opening bell. In the last reported quarter, this utility delivered an earnings surprise of 8.70%.

The company’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other one, with the average surprise being 6.35%.

Let’s see how things have shaped up prior to this announcement.

Factors to Consider

During the third quarter, AES Corp.’s service territories witnessed above-average warm temperatures. This is likely to have resulted in higher electricity demand, leading to increased household expenditure on cooling, which is likely to have boosted AES Corp.'s top line in the third quarter.

Moreover, the company projects its joint venture with Siemens, Fluence, to register solid 400% annual growth in revenues in 2020. We may expect AES Corp.’s third-quarter results to have partially benefited from this revenue growth.

Further, the company’s strategic investment in Uplight, which provides end-to-end, customer-centric, utility-related technology solutions, has been boosting AES Corp’s top line, a trend we expect to have continued in the soon-to-be-reported quarter as well.

However, the impact of the COVID-19 pandemic on overall energy demand across the United States might have offset the aforementioned positives to a certain extent. Notably, the Zacks Consensus Estimate for third-quarter revenues is pegged at $2,649 million, which indicates a 0.9% rise from the year-ago quarter’s reported figure.

Earlier during the year, management anticipated a drastic demand drop in the company’s key markets to drag down its 2020 earnings by 7 cents, primarily due to the COVID -19 impacts. Consequently, we expect AES Corp.’s third-quarter bottom line to have partially been affected by the demand drop.

Currently, the Zacks Consensus Estimate for third-quarter earnings is pegged at 43 cents, indicating a decline of 10.4% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for AES Corp. this time around. 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. That is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AES Corp. 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 some players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

SJW Group SJW is set to release third-quarter earnings on Nov 5. It has an Earnings ESP of +2.15% and a Zacks Rank #3, currently.

BCE, Inc. BCE is set to release third-quarter earnings on Nov 5. It has an Earnings ESP of +7.27% and a Zacks Rank #3, currently.

The AES Corporation Price and EPS Surprise

The AES Corporation Price and EPS Surprise
The AES Corporation Price and EPS Surprise

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

A Recent Utility Release

American Electric Power AEP reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>


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
 
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
 
The AES Corporation (AES) : Free Stock Analysis Report
 
BCE, Inc. (BCE) : Free Stock Analysis Report
 
SJW Group (SJW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research