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The AES Corporation’s (AES - Free Report) fourth-quarter 2021 adjusted earnings of 45 cents per share from continuing operations exceeded the Zacks Consensus Estimate of 43 cents by 4.7%. However, earnings declined 6.3% from 48 cents reported in the year-ago quarter.
The company incurred a GAAP loss of 42 cents per share against earnings of 6 cents generated in the fourth quarter of 2020.
For 2021, the company generated adjusted earnings of $1.52 per share, up from $1.44 in 2020. The full-year bottom line also surpassed the Zacks Consensus Estimate of $1.51.
The AES Corporation Price, Consensus and EPS Surprise
Total revenues came in at $2,770 million in the reported quarter, which improved 8.2% year over year due to higher electric as well as natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $2,530 million by 9.5%.
In 2021, the company generated revenues worth $11.41 billion, up from $9.66 billion in 2020. The full-year revenues also surpassed the Zacks Consensus Estimate of $10.90 billion.
Highlights of the Release
The total cost of sales was $2,211 million for the fourth quarter, up 33.7% year over year.
Operating income came in at $559 million, down 38.3% from $906 million in the year-ago period.
Interest expenses totaled $242 million, down 18.5% from $297 million in the year-earlier period.
As of Dec 31, 2021, the company completed the construction or the acquisition of 2,079 megawatts (MW) of renewables and energy storage. Moreover, AES Corp. signed or agreed to acquire 4,695 MW of renewables and energy storage, as of Dec 31, 2021, under long-term power purchase agreements, bringing the company's backlog to 9,239 MW.
Financial Condition
It had cash and cash equivalents of $943 million as of Dec 31, 2021 compared with $1,089 million on Dec 31, 2020.
Non-recourse debt totaled $13,603 million as of Dec 31, 2021, down from $15,005 million as of Dec 31, 2020.
During 2021, the company generated cash from operating activities worth $1,902 million compared with the year-ago figure of $2,755 million.
Total capital expenditure for 2021 amounted to $2,116 million, which increased from $1,900 million incurred in the prior year.
Guidance
For 2022, the company announced its EPS guidance in the range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.65, in line with the higher end of the guided range.
The company reaffirmed the 7-9% average annual growth target through 2025.
NextEra Energy (NEE - Free Report) reported fourth-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 2.5%. The bottom line was also up 2.5% from the prior-year quarter.
NextEra’s operating revenues were $5,046 million, which lagged the Zacks Consensus Estimate of $5,436 million by 7.2%. Nonetheless, the top line improved 14.8% year over year.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of 47 cents from continuing operations, which came in line with the Zacks Consensus Estimate. The reported figure declined 2.1% on a year-over-year basis.
CMS Energy’s operating revenues were $2,033 million, which exceeded the Zacks Consensus Estimate of $1,754 million by 15.9%. The top line also improved 17.7% on a year-over-year basis.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2021 operating earnings of 58 cents per share, which matched the Zacks Consensus Estimate. The bottom line also rose 7.4% from the year-ago earnings of 54 cents.
Xcel Energy’s fourth-quarter revenues of $3,355 million beat the Zacks Consensus Estimate of $3,136 million by 7%. The same improved 14% from the prior-year quarter’s $2,947 million.
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AES Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
The AES Corporation’s (AES - Free Report) fourth-quarter 2021 adjusted earnings of 45 cents per share from continuing operations exceeded the Zacks Consensus Estimate of 43 cents by 4.7%. However, earnings declined 6.3% from 48 cents reported in the year-ago quarter.
The company incurred a GAAP loss of 42 cents per share against earnings of 6 cents generated in the fourth quarter of 2020.
For 2021, the company generated adjusted earnings of $1.52 per share, up from $1.44 in 2020. The full-year bottom line also surpassed the Zacks Consensus Estimate of $1.51.
The AES Corporation Price, Consensus and EPS Surprise
The AES Corporation price-consensus-eps-surprise-chart | The AES Corporation Quote
Total Revenues
Total revenues came in at $2,770 million in the reported quarter, which improved 8.2% year over year due to higher electric as well as natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $2,530 million by 9.5%.
In 2021, the company generated revenues worth $11.41 billion, up from $9.66 billion in 2020. The full-year revenues also surpassed the Zacks Consensus Estimate of $10.90 billion.
Highlights of the Release
The total cost of sales was $2,211 million for the fourth quarter, up 33.7% year over year.
Operating income came in at $559 million, down 38.3% from $906 million in the year-ago period.
Interest expenses totaled $242 million, down 18.5% from $297 million in the year-earlier period.
As of Dec 31, 2021, the company completed the construction or the acquisition of 2,079 megawatts (MW) of renewables and energy storage. Moreover, AES Corp. signed or agreed to acquire 4,695 MW of renewables and energy storage, as of Dec 31, 2021, under long-term power purchase agreements, bringing the company's backlog to 9,239 MW.
Financial Condition
It had cash and cash equivalents of $943 million as of Dec 31, 2021 compared with $1,089 million on Dec 31, 2020.
Non-recourse debt totaled $13,603 million as of Dec 31, 2021, down from $15,005 million as of Dec 31, 2020.
During 2021, the company generated cash from operating activities worth $1,902 million compared with the year-ago figure of $2,755 million.
Total capital expenditure for 2021 amounted to $2,116 million, which increased from $1,900 million incurred in the prior year.
Guidance
For 2022, the company announced its EPS guidance in the range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.65, in line with the higher end 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.
Recent Utility Releases
NextEra Energy (NEE - Free Report) reported fourth-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 2.5%. The bottom line was also up 2.5% from the prior-year quarter.
NextEra’s operating revenues were $5,046 million, which lagged the Zacks Consensus Estimate of $5,436 million by 7.2%. Nonetheless, the top line improved 14.8% year over year.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of 47 cents from continuing operations, which came in line with the Zacks Consensus Estimate. The reported figure declined 2.1% on a year-over-year basis.
CMS Energy’s operating revenues were $2,033 million, which exceeded the Zacks Consensus Estimate of $1,754 million by 15.9%. The top line also improved 17.7% on a year-over-year basis.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2021 operating earnings of 58 cents per share, which matched the Zacks Consensus Estimate. The bottom line also rose 7.4% from the year-ago earnings of 54 cents.
Xcel Energy’s fourth-quarter revenues of $3,355 million beat the Zacks Consensus Estimate of $3,136 million by 7%. The same improved 14% from the prior-year quarter’s $2,947 million.