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AES Corp. (AES) Q2 Earnings and Revenues Surpass Estimates

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The AES Corporation’s (AES - Free Report) second-quarter 2021 adjusted earnings of 31 cents per share beat the Zacks Consensus Estimate of 29 cents by 6.9%. Earnings also improved 24% from the year-ago quarter’s 25 cents per share.

Including one-time adjustment, the company incurred GAAP earnings of 3 cents per share for the reported quarter against a loss of 13 cents in the prior-year period.

Total Revenues

AES Corp. generated total revenues of $2,700 million in the second quarter, up 21.8% year over year. The top line also surpassed the Zacks Consensus Estimate of $2,417 million by 11.7%.

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation Price, Consensus and EPS Surprise

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

Highlights of the Release

Total cost of sales was $1,972 million for the second quarter, up 16.5% year over year.

Operating income came in at $728 million, up 38.9% from $524 million in the year-ago period.

Interest expenses totaled $237 million, up 8.7% from $218 million in the year-earlier period.

Year to date, the company has agreed to acquire 2,912 megawatt (MW) of renewables and energy storage under long-term power purchase agreements, bringing its backlog to 8,471 MW.

Financial Condition

It reported cash and cash equivalents of $1,213 million as of Jun 30, 2021 compared with $1,089 million on Dec 31, 2020.

Non-recourse debt totaled $15,290 million as of Jun 30, up from $15,005 million on Dec 31, 2020.

For second-quarter 2021, cash from operating activities was $351 million compared with the year-ago period’s $447 million.

Total capital expenditure for the second quarter amounted to $567 million, which increased from $386 million incurred in the year-ago period.

Guidance

For 2021, the company reaffirmed its EPS guidance in the range of $1.50-$1.58. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.54, which is on par with the mid-point of the guided range. The company reaffirmed 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.

Other Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share  of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.

Exelon Corporation’s (EXC - Free Report) second-quarter 2021 earnings of 89 cents per share beat the Zacks Consensus Estimate of 70 cents by 27.1%.

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