The AES Earnings Cheat Sheet: Revenue, Net Income Climbs

S&P 500 (NYSE:SPY) component The AES Corporation (NYSE:AES) reported its results for the second quarter. AES Corporation is a global generator and distributor of electrical power. Its two primary types of businesses 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 Second Quarter

Results: Net income for The AES Corporation rose to $174 million (24 cents per share) vs. $144 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 20.8% from the year earlier quarter.

Revenue: Rose 16% to $4.54 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AES reported an adjusted EPS of 28 cents, topping the mean analyst estimate of 24 cents per share. It beat the average revenue estimate of $3.58 billion.

Quoting Management: “Compared to the first quarter of this year, adjusted earnings per share growth reflects improvements in existing operations, as well as income from new construction projects and our recent acquisition in Northern Ireland. In addition, I am pleased with our recent progress on our remaining construction projects and we remain on track to achieve our 2011 guidance,” said Paul Hanrahan, AES President and Chief Executive Officer. “Our pending acquisition of DPL has been progressing on schedule and is expected to close later this year or early next year. During the quarter, we closed $2.05 billion in AES recourse financing in anticipation of the transaction’s near-term close, allowing us to take advantage of current market interest rates as we had assumed at the time of announcement. We also received early termination of the Hart Scott Rodino Act waiting period; DPL has now set September 23, 2011 as the date for their shareholder vote on the transaction,” said Victoria D. Harker, Executive Vice President and Chief Financial Officer.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.7% to $4.26 billion in the first quarter. The figure rose 29.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 29 cents versus a mean estimate of net income of 26 cents per 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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