Top Performer for Thursday: AES Corp. (AES)

With a gain of more than 6%, The AES Corporation (AES - Snapshot Report) is one of the top-performing Zacks #1 Rank companies today. It is moving on low volume of around 4.2 million shares, compared to the average of 9.2 million.

Earlier this month, the global power company reaffirmed its full-year earnings guidance and reported better-than-expected first-quarter profit. Consequently, earnings estimates have been on the rise over the past month.

AES is 1 of 5 issues from the Utility - Electric Power industry on today's Zacks #1 Rank List, which includes 223 stocks. The other companies are Centrais Electricas Brasileiras S.A. (EBR.B - Analyst Report), FPL Group, Inc. (FPL - Snapshot Report), Huaneng Power International, Inc. (HNP - Snapshot Report) and National Grid plc (NGG - Snapshot Report).

2009 Guidance Reaffirmed

While AES was able to beat Wall Street's profit guidance in a very difficult quarter, the big news was that its outlook for the year was left unchanged. It certainly would have been better if AES raised the guidance, but, given lower market prices and volatile exchange rates, this was welcomed nonetheless.

AES continues to see adjusted earnings per share between 97 cents and $1.07 for the full year, compared to the guidance of $1.03. The company also reaffirmed its 2009 guidance for proportional cash flow from operating activities and proportional free cash flow.

This action was possible given that its share of free cash flow increased $40 million thanks to improvements in working capital.

The quarter saw adjusted earnings per share of 37 cents, which easily surpassed the consensus by 85%. Consolidated revenues declined by 17% to $3.4 billion from $4.08 billion, due to unfavorable foreign currency rates.

Estimates on the Rise

Analysts were satisfied with AES' outlook under tough circumstances and, therefore, boosted expectations for the years ending December 2009 and 2010. Estimates for this year are up 4% in the past month to $1.03 from 99 cents.

Meanwhile, expectations for next year moved higher 3.6% in that time to $1.15. Though it is still very early, it's good to see that analysts currently expect 2010 profit to advance almost 12% from 2009.