Send me real-time posts from this site at my email
Zacks

AES Earnings Beat Estimates, Revenues Increase Y/Y in Q2

The AES Corporation’s AES second-quarter 2022 adjusted earnings of 34 cents per share beat the Zacks Consensus Estimate of 31 cents by 9.7%. Earnings also improved 9.7% from the 31 cents reported in the year-ago quarter.

The year-over-year upside can be attributed to the lower adjusted tax rate and higher contributions from the company's South America Strategic Business Unit due to increased ownership in AES Andes. The company generated a GAAP loss of 27 cents per share against the earnings of 4 cents generated in the second quarter of 2021.

Total Revenues

Total revenues came in at $3,078 million in the reported quarter, which improved 14% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $2,607 million by 18.1%.

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation price-consensus-eps-surprise-chart | The AES Corporation Quote

Highlights of the Release

The total cost of sales was $2,515 million in the second quarter, up 27.5% year over year.

The operating income came in at $563 million, down 22.7% from $728 million in the year-ago period.

Interest expenses totaled $279 million, up 17.7% from $237 million in the year-earlier period.

AES Corp. signed or agreed to acquire 1,618 megawatt (MW) of renewables and energy storage as of Jun 30, 2022 under long-term power purchase agreements, bringing the company's backlog to 10,468 MW.

Financial Condition

It had cash and cash equivalents of $1,075 million as of Jun 30, 2022 compared with $943 million on Dec 31, 2021.

Non-recourse debt totaled $14,997 million as of Jun 30, 2022, up from $13,603 million as of Dec 31, 2021.

In the second quarter, AES generated cash from operating activities worth $408 million compared with the year-ago figure of $351 million.

The total capital expenditure for the second quarter amounted to $893 million, which increased from the $567 million incurred in the year-ago quarter.

Guidance

For 2022, the company reaffirmed its earnings per share (EPS) guidance in the range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.60, in line with the midpoint of the guided range.

The company reaffirmed the 7-9% average annual growth target through 2025.

Zacks Rank

AES Corp. currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

CenterPoint Energy, Inc. CNP reported second-quarter 2022 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 28 cents per share by 10.7%.

In the second quarter of 2022, CNP generated revenues worth $1,944 million, up 11.6% from the year-ago figure. CenterPoint Energy expects to generate adjusted EPS in the range of $1.37-$1.39.

American Electric Power Company, Inc. AEP reported second-quarter 2022 operating EPS of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%. The bottom line also improved 1.7% from $1.18 per share in the year-ago quarter.

American Electric’s second-quarter revenues of $4,593.8 million beat the Zacks Consensus Estimate of $4,191.2 million by 9.6%. AEP expects 2022 operating earnings in the range of $4.87-$5.07 per share.

CMS Energy Corporation CMS reported second-quarter 2022 adjusted EPS of 53 cents, which beat the Zacks Consensus Estimate of 44 cents by 20.5%. However, the reported figure declined 3.6% on a year-over-year basis.

CMS Energy had cash and cash equivalents of $77 million as of Jun 30, 2022, down from $452 million at the end of 2021. CMS expects its 2022 adjusted earnings guidance in the range of $2.85-$2.89 per share.


Free: Top Stocks for the $30 Trillion Metaverse Boom

The metaverse is a quantum leap for the internet as we currently know it - and it will make some investors rich. Just like the internet, the metaverse is expected to transform how we live, work and play. Zacks has put together a new special report to help readers like you target big profits. The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks reveals specific stocks set to skyrocket as this emerging technology develops and expands.

Download Zacks’ Metaverse Report now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
CMS Energy Corporation (CMS): Free Stock Analysis Report
 
CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
 
The AES Corporation (AES): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue