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AES Corporation (AES) to Post Q1 Earnings: What's in Store?

Zacks Equity Research
·4-min read

The AES Corporation AES is slated to report first-quarter 2022 results on May 6 before the opening bell.

In the last reported quarter, the company delivered an earnings surprise of 4.55%. AES Corporation has a trailing four-quarter earnings surprise of 4.00%, on average.

Factors to Note

The solid contracts that AES signed for 5.5 gigawatts of new renewable projects in 2021 might have favorably contributed to the company’s revenues in the quarter to be reported. Moreover, the new businesses at AES Clean Energy, which came online in 2021, and Southland units are likely to add impetus to its first-quarter revenues.

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Also, the growing rate base at U.S. utilities might have favorably contributed to the company’s revenues in the first quarter. Furthermore, Fluence, an AES joint venture with Siemens, is anticipated to have boosted AES Corp’s top line in the first quarter with its strong backlog of energy storage projects.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.64 billion, suggesting an increase of 0.2% from the year-ago quarter’s reported figure.

The higher adjusted tax rate and the assumed dilution from planned asset sales are expected to have dampened the bottom line of the company in the first quarter.

However, in January 2022, AES Corp acquired the publicly traded shares of AES Andes, bringing its ownership from 67% to 99%. This is likely to have been accretive to AES’ earnings and must have favored its performance in the quarter to be reported, thus partially mitigating the negative impact on earnings to some extent.

The Zacks Consensus Estimate for first-quarter earningsis pegged at 23 cents per share, indicating a decline of 17.9% from the prior-year reported figure.

The AES Corporation Price and EPS Surprise

The AES Corporation Price and EPS Surprise
The AES Corporation Price and EPS Surprise

The AES Corporation price-eps-surprise | The AES Corporation Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for AES Corporation this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three Utilitiesyet to release their first-quarter results and you may want to consider them as these have the right combination of elements to post an earnings beat this season:

Brookfield Renewable Partners LP BEPPartners LP has an Earnings ESP of +54.55% and a Zacks Rank of #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Brookfield Renewable Partners’ first-quarter revenues and earnings is pegged at $668.9 million . BEP has a four-quarter negative average earnings surprise of 319.58%.

Dominion EnergyD has an Earnings ESP of +0.42% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.19 per share, respectively. D has a four-quarter average earnings surprise of 1.09%.

MGE EnergyMGEE has an Earnings ESP of +3.63% and a Zacks Rank #2. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for MGE Energy’s first-quarter revenues and earnings is pegged at $176.3 million and 97 cents per share, respectively. MGEE has a four-quarter average earnings surprise of 1.70%.

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

Dominion Energy Inc. (D) : Free Stock Analysis Report

The AES Corporation (AES) : Free Stock Analysis Report

MGE Energy Inc. (MGEE) : Free Stock Analysis Report

Brookfield Renewable Partners L.P. (BEP) : Free Stock Analysis Report

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Zacks Investment Research