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AES Q1 Earnings Fall Short of Estimates, Revenues Rise Y/Y

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AES Corporation’s AES first-quarter 2021 adjusted earnings of 28 cents per share missed the Zacks Consensus Estimate of 30 cents by 6.7%. Moreover, earnings declined 3.4% from the year-ago quarter’s 29 cents.

Barring a one-time adjustment, the company incurred GAAP loss of 22 cents per share in the reported quarter against earnings of 22 cents in the prior-year period.

Highlights of the Release

AES generated total revenues of $2.64 billion in the first quarter, up 12.7% year over year. The top line also exceeded the Zacks Consensus Estimate of $2.41 million by 9.5%.

Total cost of sales was $1,971 million in the first quarter, up 7.6% year over year.

Operating income came in at $664 million, up from $507 million in the year-ago period.

Interest expenses totaled $190 million, down from $233 million in the year-earlier period.

AES signed 1,088 MW of new PPAs for renewables and energy storage, including a 10-year supply agreement with Google for 500 MW of 24/7 carbon-free energy in Virginia.

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 reported cash and cash equivalents of $1,886 million as of Mar 31, 2021, compared with $1,089 million as of Dec 31, 2020.

Non-recourse debt totaled $15,014 million as of Mar 31, up from $15,005 million as of Dec 31.

In the first quarter of 2020, cash from operating activities was $253 million compared with the year-ago quarter’s $373 million.

Total capital expenditures during the first quarter amounted to $432 million, which decreased from $576 million incurred in the year-ago quarter.

Guidance

For 2021, AES reaffirmed its EPS guidance in the range of $1.50-$1.58. The Zacks Consensus Estimate for current-year earnings is pegged at $1.55, which is above the mid-point of the guided range.

Zacks Rank

AES currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

DTE Energy Company DTE reported first-quarter 2021 operating earnings per share of $2.44, which surpassed the Zacks Consensus Estimate of $2.16 by 13%.

American Electric Power Co., Inc. AEP reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.

NextEra Energy, Inc. NEE reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%.

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American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report

DTE Energy Company (DTE) : Free Stock Analysis Report

The AES Corporation (AES) : Free Stock Analysis Report

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

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