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AES' Q1 Earnings Miss Estimates, Revenues Increase Y/Y

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The AES Corporation’s AES first-quarter 2022 adjusted earnings of 21 cents per share from continuing operations missed the Zacks Consensus Estimate of 23 cents by 8.7%. The adjusted earnings also declined 25% from 28 cents reported in the year-ago quarter.

The year-over-year downside can be attributed to the impact of realized gains on de-designated interest rate swaps in 2021 and lower contributions from the Mexico, Central America and the Caribbean (MCAC) Strategic Business Unit (SBU).

The company generated GAAP earnings of 16 cents per share against a loss of 22 cents generated in the first quarter of 2021.

Total Revenues

Total revenues came in at $2,852 million in the reported quarter, which improved 8.2% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $2,639 million by 8.1%.

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

Highlights of the Release

The total cost of sales was $2,322 million in the first quarter, up 17.8% year over year.

Operating income came in at $530 million, down 20.2% from $664 million in the year-ago period.

Interest expenses totaled $258 million, up 35.8% from $190 million in the year-earlier period.

AES Corp. signed or agreed to acquire 1,087 MW of renewables and energy storage, as of Mar 31, 2022, under long-term power purchase agreements, bringing the company's backlog to 10,307 MW.

Financial Condition

It had cash and cash equivalents of $1,056 million as of Mar 31, 2022, compared with $943 million on Dec 31, 2021.

Non-recourse debt totaled $14,016 million as of Mar 31, 2022, up from $13,603 million as of Dec 31, 2021.

During the first quarter, the company generated cash from operating activities worth $457 million compared with the year-ago figure of $253 million.

Total capital expenditure for the first quarter amounted to $766 million, which increased from $432 million incurred in the year-ago quarter.

Guidance

For 2022, the company reaffirmed its EPS guidance in the range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.61, just a bit higher than the mid-point of the guided range.

The company reaffirmed the 7-9% average annual growth target through 2025.

Zacks Rank

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

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

Utility Releases

CenterPoint Energy CNP reported first-quarter 2022 adjusted earnings of 47 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line declined 20.3% from the year-ago quarter’s figure.

In the first quarter of 2022, CenterPoint Energy generated revenues worth $2,763 million, up 8.5% from the year-ago figure. CNP’s revenues beat the Zacks Consensus Estimate of $2.559.4 million by 8%.

NextEra Energy NEE reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%. The bottom line was also up 10.5% from the prior-year quarter.

NextEra Energy’s operating revenues were $2,890 million, which lagged the Zacks Consensus Estimate of $5,178 million by 44.2%. NEE’s top line also decreased 22.4% year over year.

Entergy Corporation ETR reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%. The reported figure also declined 10.2% from $1.47 per share in the year-ago quarter.

Entergy’s first-quarter revenues of $2.88 billion exceeded the Zacks Consensus Estimate of $2.75 billion by 4.8%. As of Mar 31, 2022, ETR had cash and cash equivalents of $701.6 million compared with $442.6 million as of Dec 31, 2021.


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