The AES Corp. Earnings: Misses Expectations as Profit Falls

S&P 500 (NYSE:SPY) component The AES Corporation (NYSE:AES) reported its results for the second quarter. AES is a global generator and distributor of electrical power. Its two primary types of businesses are generation and utilities. The former owns and operates power plants from which the company generates power to sell to wholesale customers; the latter owns and operates facilities to transmit and sell electricity to residential and commercial customers.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

The AES Corporation Earnings Cheat Sheet

Results: Net income for The AES Corporation fell to $140 million (18 cents per share) vs. $174 million (22 cents per share) a year earlier. This is a decline of 19.5% from the year-earlier quarter.

Revenue: Fell 5.5% to $4.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The AES Corporation fell short of the mean analyst estimate of 32 cents per share. It fell short of the average revenue estimate of $4.5 billion.

Quoting Management: “Despite facing some commodity and foreign exchange headwinds, we are taking all steps to meet our commitments and execute on our plan to unlock shareholder value,” said Andrs Gluski, AES President and Chief Executive Officer. “We have repurchased more than 20 million shares since May 2012 and the Board declared a quarterly dividend of $0.04 per share, the Company’s first cash dividend since 1993. We are exceeding our $50 million cost cutting target in 2012, with an expected savings of $65 million this year. In addition, we have announced or closed nine asset sales since September 2011, representing more than $930 million in proceeds at attractive valuations for shareholders.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 40 cents versus a mean estimate of net income of 28 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 35 cents a share to 33 cents over the last ninety days. The average estimate for the fiscal year is $1.28 per share, down from $1.29 ninety days ago.

Competitors to Watch: DPL Inc., NRG Energy, Inc., Constellation Energy Group, Inc., Companhia Energetica Minas Gerais, Dynegy Inc., Enersis S.A., EDENOR S.A., Duke Energy Corporation, Intl. Power plc, and Empresa Nacional de Electricidad.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Facebook: DEAD Cat Bounce?

Disney Third Quarter Earnings Sneak Peek>>

P&G Earnings: Margins Turn Around as Net Income POPS>>