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What Awaits The AES Corporation (AES) This Earnings Season?

The AES Corporation AES is slated to report first-quarter 2023 results on May 5, after market close.

Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.04%.

Factors to Note

In the first quarter of 2023, AES’ service territories witnessed a warmer-than-normal weather pattern. Such a weather pattern is expected to have hurt electricity demand for heating purposes during the winter months. This might have dented the top-line performance in the soon-to-be-reported quarter.

A strong volume of LNG sales and the favorable outcome of AES Ohio's distribution rate case are likely to have boosted overall revenues in the first quarter of 2023.

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

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The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.91 billion, suggesting an increase of 2% from the year-ago quarter’s levels.

Strong sales, strength in margins in Brazil and AES Andes, and a significant volume of new U.S. renewable projects coming online in recent quarters might have boosted its overall margins, thus boosting the bottom line in the first quarter.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 25 cents per share. This indicates growth of 19.1% from the prior-year quarter’s figure.

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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AES 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 other Utility players you may want to consider as these also have the right combination of elements to post an earnings beat this season:

Brookfield Renewable Partners BEP has an Earnings ESP of +115.39% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter sales, pegged at $692.7 million, calls for a decline of 39% from the prior-year quarter’s tally.

BEP has a four-quarter negative earnings surprise of 271.73%, on average. The Zacks Consensus Estimate for Brookfield’s first-quarter earnings is pegged at a loss of 13 cents per share.

NewJersey Resources NJR has an Earnings ESP of +1.67% and a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.20 per share, indicating a decline of 11.8% from the prior year’s reported figure.

The Zacks Consensus Estimate for NJR’s first-quarter sales is pegged at $958.4 million, suggesting a 5.1% increase from the prior year’s reported figure.

PPL Corporation PPL has an Earnings ESP of +7.69% and a Zacks Rank #3. The Zacks Consensus Estimate for PPL Corporation’s first-quarter revenues is pegged at $1.86 billion, suggesting growth of 4.2% from the year-ago quarter’s levels.

The Zacks Consensus Estimate for PPL’s first-quarter earnings is pegged at 42 cents per share. This indicates growth of 2.4% from the prior year’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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PPL Corporation (PPL) : Free Stock Analysis Report

The AES Corporation (AES) : Free Stock Analysis Report

NewJersey Resources Corporation (NJR) : Free Stock Analysis Report

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

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