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 Andrés 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)

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