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AES Earnings Beat Estimates, Revenues Increase Y/Y in Q2

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The AES Corporation’s (AES - Free Report) second-quarter 2022 adjusted earnings of 34 cents per share beat the Zacks Consensus Estimate of 31 cents by 9.7%. Earnings also improved 9.7% from the 31 cents reported in the year-ago quarter.

The year-over-year upside can be attributed to the lower adjusted tax rate and higher contributions from the company's South America Strategic Business Unit due to increased ownership in AES Andes. The company generated a GAAP loss of 27 cents per share against the earnings of 4 cents generated in the second quarter of 2021.

Total Revenues

Total revenues came in at $3,078 million in the reported quarter, which improved 14% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $2,607 million by 18.1%.

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

The total cost of sales was $2,515 million in the second quarter, up 27.5% year over year.

The operating income came in at $563 million, down 22.7% from $728 million in the year-ago period.

Interest expenses totaled $279 million, up 17.7% from $237 million in the year-earlier period.

AES Corp. signed or agreed to acquire 1,618 megawatt (MW) of renewables and energy storage as of Jun 30, 2022 under long-term power purchase agreements, bringing the company's backlog to 10,468 MW.

Financial Condition

It had cash and cash equivalents of $1,075 million as of Jun 30, 2022 compared with $943 million on Dec 31, 2021.

Non-recourse debt totaled $14,997 million as of Jun 30, 2022, up from $13,603 million as of Dec 31, 2021.

In the second quarter, AES generated cash from operating activities worth $408 million compared with the year-ago figure of $351 million.

The total capital expenditure for the second quarter amounted to $893 million, which increased from the $567 million incurred in the year-ago quarter.

Guidance

For 2022, the company reaffirmed its earnings per share (EPS) guidance in the range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.60, in line with the midpoint 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.

Utility Releases

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 per share 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 EPS in the range of $1.37-$1.39.

American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2022 operating EPS of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%. The bottom line also improved 1.7% from $1.18 per share in the year-ago quarter.

American Electric’s second-quarter revenues of $4,593.8 million beat the Zacks Consensus Estimate of $4,191.2 million by 9.6%. AEP expects 2022 operating earnings in the range of $4.87-$5.07 per share.

CMS Energy Corporation (CMS - Free Report) reported second-quarter 2022 adjusted EPS of 53 cents, which beat the Zacks Consensus Estimate of 44 cents by 20.5%. However, the reported figure declined 3.6% on a year-over-year basis.

CMS Energy had cash and cash equivalents of $77 million as of Jun 30, 2022, down from $452 million at the end of 2021. CMS expects its 2022 adjusted earnings guidance in the range of $2.85-$2.89 per share.

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