The AES Earnings: Everything You Must Know Now

The AES Corporation (NYSE:AES) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

The AES Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 77.78% to $0.32 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Decreased 2.96% to $4.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The AES Corporation reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.26. It missed the average revenue estimate of $4.49 billion.

Quoting Management: “We had a solid second quarter, despite facing significant headwinds in Latin America as a result of some of the driest hydrological conditions in many decades. We remain on track to hit our 2013 guidance metrics,” said AndrĂ©s Gluski, AES President and Chief Executive Officer. “Since the first quarter, we continued to make progress on asset sales, overhead reduction and capital allocation. We closed asset sales for $56 million in proceeds to AES and exited Trinidad, reducing the number of countries in our portfolio to 21 from 28 in 2011. We invested $63 million in share repurchases, prepaid $300 million of recourse debt and reduced general and administrative expense by $15 million relative to second quarter 2012.”

Key Stats (on next page)…

Revenue decreased 4.62% from $4.27 billion in the previous quarter. EPS increased 23.08% from $0.26 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.33 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $1.29 to a profit of $1.28 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)