AES to Report Q4 Earnings: Here's What You Need to Know
The AES Corporation AES is slated to report fourth-quarter and full-year 2023 results on Feb 26, after the closing bell.
It delivered an earnings surprise of 9.09% in the last reported quarter. However, the company delivered an average negative earnings surprise of 2.18% for the trailing four quarters.
Factors to Note
In the fourth quarter, AES’ service territories witnessed mixed weather patterns. While some parts of its service areas experienced warmer-than-normal temperatures, accompanied with drought, other parts observed mostly normal temperatures, along with precipitation. Such a weather pattern is likely to have had a moderate impact on the company’s overall top-line performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $3.10 billion, indicating an improvement of 1.3% from the year-ago quarter’s reported figure.
The AES Corporation Price and EPS Surprise
The AES Corporation price-eps-surprise | The AES Corporation Quote
Improved margins from AES’ Fluence business, as well as the company’s cost savings initiatives, are likely to have bolstered the company’s earnings performance in the soon-to-be-reported quarter amid the adverse impacts of higher interest expenses.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 69 cents per share, indicating a surge of 40.8% 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 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, which is not the case here.
Earnings ESP: AES’ Earnings ESP is +0.36%. 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 #4 (Sell).
Stocks to Consider
Here is one Utility player that has the right combination of elements to come up with an earnings beat this reporting cycle.
Sempra Energy SRE has an Earnings ESP of +0.29% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a four-quarter average earnings surprise of 9.03%. The Zacks Consensus Estimate for SRE’s fourth-quarter sales is pegged at $4.03 billion, indicating growth of 16.7% from that recorded in the prior-year quarter. The consensus mark for earnings is pinned at $1.13 per share.
Recent Utility Releases
DTE Energy Company DTE reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.
DTE Energy initiated its 2024 operating EPS projection. The company expects operating EPS in the range of $6.54-$6.83.
Xcel Energy XEL reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.
The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s level of $4,053 million.
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
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
Sempra Energy (SRE) : Free Stock Analysis Report
DTE Energy Company (DTE) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
