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AES Corp (AES) Misses on Q1 Earnings, Reaffirms '17 Outlook
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The AES Corporation’s (AES - Free Report) first-quarter 2017 adjusted earnings per share of 17 cents missed the Zacks Consensus Estimate of 20 cents by 15%. However, earnings improved 13.3% from 15 cents in the year-ago period.
Barring the one-time adjustments, the company’s first-quarter loss was 4 cents as against the year-ago earnings of 20 cents.
Highlights of the Release
AES Corp. generated total revenue of $3,492 million in the first quarter, up 0.6% year over year. The top line, however, missed the Zacks Consensus Estimate of $3,534 million by 1.2%.
In the reported quarter, total cost of sales was $2,899 million, up 5% year over year. General and administrative expenses were $54 million, higher than the year-ago level of $48 million.
Operating income was up 16.5% to $593 million.
Interest expenses in the quarter were $348 million, up from $342 million in the year-ago quarter.
The AES Corporation Price, Consensus and EPS Surprise
AES Corp. reported cash and cash equivalents of $1,588 million as of Mar 31, 2017, compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,697 million as of Mar 31, 2017, up from $14,489 million as of Dec 31, 2016.
In the first quarter, cash from operating activities was $703 million, compared with $640 million a year ago.
Total capital expenditure in the period was $500 million, lower than $650 million a year ago.
Proportional free cash flow, a non-GAAP measure, was $546 million in the first quarter, up from $490 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00−$1.05.
The company still expects 2017 consolidated free cash flow guidance in the band of $1,400−$2,000 million.
Business Update
On Feb 24, 2017, AES Corp. and Alberta Investment Management Corporation (AIMCo), have entered into an agreement to purchase FTP Power LLC (sPower) − the largest independent owner, operator and developer of utility scale solar assets in the U.S. − from Fir Tree Partners and its minority owners. The transaction is valued at $853.0 million in cash, plus the assumption of $724.0 million in non-recourse debt. Per the terms of the agreement, AES Corp. and AIMCo will independently acquire and own a little less than 50% equity interests in sPower.
In Mar 2017, the company announced plans to shut down 1,225 megawatts (“MW”) of merchant coal-fired generation at DPL (Killen and Stuart plants) by Jun 1, 2018.
In Apr 2017, AES Corp. closed the sale of 1,743 MW of coal-fired generation in Kazakhstan for $24 million. Again, in the same month, it announced the sale of its interest in 739 MW of merchant coal-fired generation at DPL in Ohio (Miami Fort and Zimmer plants) worth $50 million.
Zacks Rank
AES Corp. presently carries a Zacks Rank #4 (Sell).
Peer Releases
DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share of $1.79, which topped the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion that surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entergy Corporation (ETR - Free Report) , a Zacks Rank #3 company, posted first-quarter 2017 operational earnings of 99 cents per share, missing the Zacks Consensus Estimate of $1.06 by 6.6%. Total revenue of $2,588.5 million beat the Zacks Consensus Estimate of $2,566 million by 0.9%.
NextEra Energy, Inc. (NEE - Free Report) is also a Zacks Rank #3 company. It reported first-quarter 2017 adjusted EPS of $1.75 beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, which surpassed the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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AES Corp (AES) Misses on Q1 Earnings, Reaffirms '17 Outlook
The AES Corporation’s (AES - Free Report) first-quarter 2017 adjusted earnings per share of 17 cents missed the Zacks Consensus Estimate of 20 cents by 15%. However, earnings improved 13.3% from 15 cents in the year-ago period.
Barring the one-time adjustments, the company’s first-quarter loss was 4 cents as against the year-ago earnings of 20 cents.
Highlights of the Release
AES Corp. generated total revenue of $3,492 million in the first quarter, up 0.6% year over year. The top line, however, missed the Zacks Consensus Estimate of $3,534 million by 1.2%.
In the reported quarter, total cost of sales was $2,899 million, up 5% year over year. General and administrative expenses were $54 million, higher than the year-ago level of $48 million.
Operating income was up 16.5% to $593 million.
Interest expenses in the quarter were $348 million, up from $342 million in the year-ago quarter.
The AES Corporation Price, Consensus and EPS Surprise
The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote
Financial Condition
AES Corp. reported cash and cash equivalents of $1,588 million as of Mar 31, 2017, compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,697 million as of Mar 31, 2017, up from $14,489 million as of Dec 31, 2016.
In the first quarter, cash from operating activities was $703 million, compared with $640 million a year ago.
Total capital expenditure in the period was $500 million, lower than $650 million a year ago.
Proportional free cash flow, a non-GAAP measure, was $546 million in the first quarter, up from $490 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00−$1.05.
The company still expects 2017 consolidated free cash flow guidance in the band of $1,400−$2,000 million.
Business Update
On Feb 24, 2017, AES Corp. and Alberta Investment Management Corporation (AIMCo), have entered into an agreement to purchase FTP Power LLC (sPower) − the largest independent owner, operator and developer of utility scale solar assets in the U.S. − from Fir Tree Partners and its minority owners. The transaction is valued at $853.0 million in cash, plus the assumption of $724.0 million in non-recourse debt. Per the terms of the agreement, AES Corp. and AIMCo will independently acquire and own a little less than 50% equity interests in sPower.
In Mar 2017, the company announced plans to shut down 1,225 megawatts (“MW”) of merchant coal-fired generation at DPL (Killen and Stuart plants) by Jun 1, 2018.
In Apr 2017, AES Corp. closed the sale of 1,743 MW of coal-fired generation in Kazakhstan for $24 million. Again, in the same month, it announced the sale of its interest in 739 MW of merchant coal-fired generation at DPL in Ohio (Miami Fort and Zimmer plants) worth $50 million.
Zacks Rank
AES Corp. presently carries a Zacks Rank #4 (Sell).
Peer Releases
DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share of $1.79, which topped the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion that surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entergy Corporation (ETR - Free Report) , a Zacks Rank #3 company, posted first-quarter 2017 operational earnings of 99 cents per share, missing the Zacks Consensus Estimate of $1.06 by 6.6%. Total revenue of $2,588.5 million beat the Zacks Consensus Estimate of $2,566 million by 0.9%.
NextEra Energy, Inc. (NEE - Free Report) is also a Zacks Rank #3 company. It reported first-quarter 2017 adjusted EPS of $1.75 beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, which surpassed the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>