The AES Corp Earnings Cheat Sheet: Swinging to a Loss After Two Quarters of Profit

S&P 500 (NYSE:SPY) component The AES Corporation (NYSE:AES) reported its results for the third 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 Third Quarter

Results: Reported a loss of $131 million (17 cents per diluted share) in the quarter. The electric utilities company had net income of $114 million or 14 cents per share in the year earlier quarter.

Revenue: Rose 9% to $4.38 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AES reported adjusted net income of 27 cents per share. By that measure, the company beat the mean estimate of 24 cents per share.

Quoting Management: “We had a strong third quarter and remain on track to meet our 2011 and 2012 guidance for cash flow metrics and adjusted EPS. We are executing on our core and growth markets strategy, accelerating our cost savings programs and working to close the acquisition of DP&L,” said Andrs Gluski, AES President and Chief Executive Officer. “With these steps and the completion of more than 1,500 MW of new construction in 2011, we are confident in our future performance, and we intend to declare a $120 million annual dividend in the third quarter of 2012.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13% to $4.54 billion in the second quarter. The figure rose 3.7% in the first quarter from the year earlier and climbed 29.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 4 cents in the second quarter and by 3 cents in the first quarter.

The company’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $174 million in the second quarter and a profit of $224 million in the first quarter.

Looking Forward: The average estimate for the fourth quarter is steady at 25 cents a share. For the fiscal year, the average estimate has been unchanged at $1.03 a share.

Competitors to Watch: DPL Inc. (NYSE:DPL), NRG Energy, Inc. (NYSE:NRG), Constellation Energy Group, Inc. (NYSE:CEG), Companhia Energetica Minas Gerais (NYSE:CIG), Dynegy Inc. (NYSE:DYN), Enersis S.A. (NYSE:ENI), EDENOR S.A. (NYSE:EDN), Duke Energy Corporation (NYSE:DUK), Intl. Power plc (IPRPY), and Empresa Nacional de Electricidad (NYSE:EOC).

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(Source: Xignite Financials)

 

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