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AES Corp (AES) Q1 Earnings Miss Estimates, Revenues Down Y/Y

Zacks Equity Research

AES Corporation’s AES first-quarter 2019 adjusted earnings of 28 cents per share missed the Zacks Consensus Estimate of 30 cents by 6.7%. However, earnings were in line with the year-ago quarter’s figure.

 

Barring one-time adjustment, the company delivered GAAP earnings of 23 cents per share in the reported quarter compared with $1.03 in the prior-year period.

 

Highlights of the Release

 

AES Corp generated total revenues of $2.65 billion in the first quarter, down 3.3% year over year. The top line also lagged the Zacks Consensus Estimate of $2.72 million by 2.6%.

 

Total cost of sales was $2,064 million in the first quarter, down 0.96% year over year. General and administrative expenses were $46 million, 17.9% lower than the year-ago quarter’s $56 million.

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Operating income stood at $586 million, down from $656 million in the year-ago period.

 

Interest expenses summed $265 million, down from $281 million in the year-earlier period.

 

The company signed long-term contracts for 494 MW of renewable capacity, increasing backlog to 6.2 GW. It also signed a 12-year agreement to sell up to 18 TBTU of LNG annually in the Caribbean, beginning 2020.

 

During the quarter, AES Corp also announced a $100-million incremental annual run rate cost-savings target, which is to be realized by 2022 from digital initiatives.

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote

Financial Condition

AES Corp reported cash and cash equivalents of $1,426 million as of Mar 31, 2019, compared with $1,166 million as of Dec 31, 2018.

Non-recourse debt totaled $14,550 million as of Mar 31, 2019, up from $13,986 million as of Dec 31, 2018.

 

In the first quarter of 2019, cash from operating activities was $690 million compared with the year-ago figure of $515 million.

 

Total capital expenditures during the first quarter amounted to $504 million, which increased from $494 million incurred during the year-ago quarter.

 

Guidance

 

For 2019, AES Corp reaffirmed its view for adjusted earnings of $1.28-$1.40 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $1.34, which is the mid-point of the company’s guided range.

 

AES Corp also reaffirms its 2019 Parent Free Cash Flow expectation of $700-$750 million and its average annual growth rate target of 7-9% through 2022.

 

Zacks Rank

 

AES Corp currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Recent Utility Releases

 

FirstEnergy Corporation FE, which carries a Zacks Rank #2, delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

 

NextEra Energy, Inc. NEE, which carries a Zacks Rank #3, reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

 

DTE Energy Company DTE, which carries a Zacks Rank #2, reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

 

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