AES Earnings: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component The AES Corporation (NYSE:AES) reported net income above Wall Street’s expectations for the first 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. .

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The AES Earnings Cheat Sheet for the First Quarter

Results: Net income for The AES Corporation rose to $515 million (44 cents per share) vs. $483 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 6.6% from the year-earlier quarter.

Revenue: Rose 14.1% to $4.74 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The AES Corporation reported adjusted net income of 37 cents per share. By that measure, the company beat the mean estimate of 28 cents per share. It beat the average revenue estimate of $4.5 billion.

Quoting Management: “We continue to execute on our plan to unlock shareholder value. Our strong first quarter puts us on track to meet our full year 2012 Adjusted EPS guidance, driven by the contributions from new businesses we commissioned or acquired in 2011. In addition, we completed the sales of Ironwood and Red Oak for $227 million in proceeds,” said Andrs Gluski, AES President and Chief Executive Officer. “Looking forward, we are committed to delivering our three-year total return CAGR of 8% to 10% by 2015, and in support of that commitment, we increased the outstanding authorization for share repurchases from $122 million to $302 million.”

Key Stats:

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 20 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 34 cents per share to 33 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $1.28 per share, the average estimate for the fiscal year has fallen from $1.29 ninety days ago.

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

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