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What's in Store for The AES Corporation (AES) in Q2 Earnings?

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The AES Corporation (AES - Free Report) is scheduled to release second-quarter 2022 results on Aug 4.

In the last reported quarter, the company delivered a negative earnings surprise of 8.70%. However, AES Corporation came up with a four-quarter average earnings surprise of 3.49%.

Let’s discuss the factors that are likely to get reflected in upcoming quarterly results.

Factors to Consider

During the second quarter, AES’ service territories witnessed warm weather conditions, accompanied by dryness and drought-like conditions. Such weather patterns are expected to have boosted the demand for cooling purposes, thus contributing positively to the company’s second-quarter revenues.

The solid pipeline of projects is expected to have added impetus to its second-quarter revenues. Also, the rate base growth is likely to have benefited the overall revenues of the company.

However, the lower pre-tax contribution from the stock’s Mexico, Central America and the Caribbean regions might have adversely impacted overall second-quarter revenues.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.61 billion, indicating a 3.3% decline from the year-ago quarter’s reported figure.

Higher losses at AES Next, primarily due to pandemic-related supply-chain issues at Fluence, and nonrecurring gains on interest rate hedges are expected to have dampened the earnings of the company in the second quarter.

The Zacks Consensus Estimate for AES Corporation’s second-quarter earningsis pegged at 31 cents per share, flat with the year-ago quarter’s reported figure.

The AES Corporation Price and EPS Surprise

The AES Corporation Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for AES Corporation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AES Corporation has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are two utilitystocksyou may want to consider as these have the right combination of elements to post an earnings beat this season:

Spire (SR - Free Report) has an Earnings ESP of +6.66% and a Zacks Rank #3. The Zacks Consensus Estimate for Spire’s second-quarter earnings is pegged at 1 cent per share, suggesting a decline of 83.3% from the year-ago quarter.

The Zacks Consensus Estimate for SR’s second-quarter sales is pegged at $325.5 million, implying a decline of 0.7% from the prior-year reported figure.

Consolidated Edison(ED - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3. The Zacks Consensus Estimate for Consolidated Edison’s second-quarter earnings is pegged at 58 cents per share, suggesting growth of 9.4% from the year-ago quarter.

The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.16 billion, implying growth of 6.3% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Recent Utility Release

CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2022 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 28 cents by 10.7%.

In the second quarter of 2022, CNP generated revenues worth $1,944 million, up 11.6% from the year-ago figure. CenterPoint Energy expects to generate adjusted earnings per share in the range of $1.37-$1.39.