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AES Q3 Earnings Fall Short of Estimates, Revenues Decline Y/Y

AES Corporation’s AES third-quarter 2020 adjusted earnings of 42 cents per share missed the Zacks Consensus Estimate of 43 cents by 2.3%. Moreover, earnings fell 12.5% from the year-ago quarter’s 48 cents per share.

Barring a one-time adjustment, the company incurred GAAP losses of 50 cents per share in the reported quarter against GAAP earnings of 32 cents in the prior-year period.

The year-over-year deterioration can be attributed to expenses associated with dispositions and impairments.

The AES Corporation Price, Consensus and EPS Surprise

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

 

Highlights of the Release

AES Corp. generated total revenues of $2,545 million in the third quarter, down 3% year over year. The top line also lagged the Zacks Consensus Estimate of $2,649 million by 3.9%.
 
Total cost of sales was $1,729 million in the third quarter, down 10.1% year over year. General and administrative expenses were $41 million, which came in line with the year-ago quarter figure.

Operating income totaled $756 million, up 7.8% from $701 million in the year-ago period.

Interest expenses were $290 million, up 16% from $250 million in the year-earlier period.

Financial Condition

AES Corp. reported cash and cash equivalents of $1,505 million as of Sep 30, 2020, compared with $1,029 million as of Dec 31, 2019.

Non-recourse debt totaled $15,536 million as of Sep 30, 2020, up from $14,914 million as of Dec 31, 2019.

In the third quarter of 2020, cash from operating activities was $1,267 million compared with the year-ago quarter’s $761 million.

Total capital expenditures during the third quarter amounted to $413 million, which declined from $558 million incurred in the year-ago quarter.

Guidance

For 2020, AES Corp. had reaffirmed its EPS guidance of $1.32-$1.42 but now expects to generate earnings at the top end of the range. The Zacks Consensus Estimate for 2020 earnings is pegged at $1.37, which is in line with the midpoint of the guidance range.

Zacks Rank

AES Corp. currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

Sempra Energy’s SRE third-quarter 2020 adjusted earnings per share (EPS) came in at $1.31, which missed the Zacks Consensus Estimate of $1.47 by 10.9%.

Entergy ETR reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.

American Electric Power AEP reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

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Sempra Energy (SRE): Free Stock Analysis Report
 
Entergy Corporation (ETR): Free Stock Analysis Report
 
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
The AES Corporation (AES): Free Stock Analysis Report
 
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