AES to Report Q3 Earnings: Here's What You Need to Know
The AES Corporation AES is slated to report third-quarter 2023 results on Nov 3, before market open.
It reported a negative earnings surprise of 16% in the last reported quarter. The company delivered an average negative earnings surprise of 0.29% for the last four quarters.
Factors to Note
In the third quarter, AES’ service territories witnessed a mostly average weather pattern, which, in turn, is likely to have had a moderate impact on the company’s top-line performance in the soon-to-be-reported quarter.
The AES Corporation Price and EPS Surprise
The AES Corporation price-eps-surprise | The AES Corporation Quote
However, a few tornados and thunderstorms, along with flooding, affected some parts of the company’s service areas, which might have led to outages for its customers. This, in turn, is likely to have had some impact on AES’ overall revenues in the quarter to be reported.
The Zacks Consensus Estimate for revenues is pegged at $3.66 billion, indicating an improvement of 0.8% from the year-ago quarter’s reported figure.
The tornados and thunderstorms during the third quarter might have resulted in infrastructural damage for this electricity provider, thereby increasing its quarterly operating expenses. This, along with lower contributions from LNG sales and higher interest expense from incremental debt, is expected to have hurt the company’s bottom line.
Nevertheless, strong utilities’ earnings, driven by the typical second-half demand seasonality, might have contributed favorably to the company’s third-quarter earnings to some extent.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 52 cents per share, indicating a deterioration of 17.5% from the prior-year quarter’s level.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for AES this time. 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, which is not the case here.
Earnings ESP: AES’ Earnings ESP is -2.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AES 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 three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Consolidated Edison ED has an Earnings ESP of +3.93% and a Zacks Rank #2 at present. The company delivered a four-quarter average earnings surprise of 8.22%.
Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s third-quarter earnings and sales is pegged at $1.58 per share and $3.82 billion, respectively.
NiSource NI has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.06 billion. The company has a trailing four-quarter average negative earnings surprise of 5.61%.
Ameren AEE has an Earnings ESP of +0.22% and a Zacks Rank #3 at present. The consensus estimate for third-quarter earnings is pinned at $1.80 per share, indicating a 3.5% increase year over year.
Ameren boasts a four-quarter average earnings surprise of 8.86%. The consensus mark for third-quarter sales is pegged at $2.37 billion, indicating growth of 2.9% from that recorded in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Ameren Corporation (AEE) : Free Stock Analysis Report
NiSource, Inc (NI) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
