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The AES Corporation’s (AES - Free Report) third-quarter 2022 adjusted earnings of 63 cents per share beat the Zacks Consensus Estimate of 54 cents by 16.7%. Earnings also improved 26% from 50 cents reported in the year-ago quarter.
The company generated GAAP earnings of 59 cents per share compared with 48 cents generated in the third quarter of 2021.
The year-over-year upside can be attributed to higher margins from the Mexico, Central America and the Caribbean Strategic Business Unit due to redirecting excess LNG to international customers.
The AES Corporation Price, Consensus and EPS Surprise
Total revenues came in at $3,627 million in the reported quarter, which improved 19.5% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $3,117 million by 16.4%.
Highlights of the Release
The total cost of sales was $2,735 million in the third quarter, up 20.2% year over year.
The operating income came in at $892 million, up 17.4% from $760 million in the year-ago period.
Interest expenses totaled $276 million, up 14% from $242 million in the year-earlier period.
AES Corp. signed or agreed to acquire 3,178 megawatt (MW) of renewables and energy storage as of Sep 30, 2022 under long-term power purchase agreements, bringing the company's backlog to 11,230 MW.
Financial Condition
It had cash and cash equivalents of $1,553 million as of Sep 30, 2022 compared with $943 million on Dec 31, 2021.
Non-recourse debt totaled $15,530 million as of Sep 30, 2022, up from $13,603 million as of Dec 31, 2021.
In the third quarter, AES generated cash from operating activities worth $784 million compared with the year-ago figure of $775 million.
The total capital expenditure for the third quarter amounted to $1,052 million, which increased substantially from $535 million incurred in the year-ago quarter.
Guidance
For 2022, the company now expects adjusted earnings per share (EPS) to be at or near the high end of the prior guidance range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.61.
The company reaffirmed the 7-9% average annual growth target through 2025.
Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted EPS came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%. The bottom line also increased 15.9% from $1.70 in the prior-year quarter.
In the quarter under review, Sempra’s total revenues of $3,617 million increased 20% year over year on higher contributions from the Natural Gas business (up 26.5%), Electric business (up 4%) as well as Energy-related businesses (up 48.6%).
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.
FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.
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AES Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
The AES Corporation’s (AES - Free Report) third-quarter 2022 adjusted earnings of 63 cents per share beat the Zacks Consensus Estimate of 54 cents by 16.7%. Earnings also improved 26% from 50 cents reported in the year-ago quarter.
The company generated GAAP earnings of 59 cents per share compared with 48 cents generated in the third quarter of 2021.
The year-over-year upside can be attributed to higher margins from the Mexico, Central America and the Caribbean Strategic Business Unit due to redirecting excess LNG to international customers.
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 $3,627 million in the reported quarter, which improved 19.5% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $3,117 million by 16.4%.
Highlights of the Release
The total cost of sales was $2,735 million in the third quarter, up 20.2% year over year.
The operating income came in at $892 million, up 17.4% from $760 million in the year-ago period.
Interest expenses totaled $276 million, up 14% from $242 million in the year-earlier period.
AES Corp. signed or agreed to acquire 3,178 megawatt (MW) of renewables and energy storage as of Sep 30, 2022 under long-term power purchase agreements, bringing the company's backlog to 11,230 MW.
Financial Condition
It had cash and cash equivalents of $1,553 million as of Sep 30, 2022 compared with $943 million on Dec 31, 2021.
Non-recourse debt totaled $15,530 million as of Sep 30, 2022, up from $13,603 million as of Dec 31, 2021.
In the third quarter, AES generated cash from operating activities worth $784 million compared with the year-ago figure of $775 million.
The total capital expenditure for the third quarter amounted to $1,052 million, which increased substantially from $535 million incurred in the year-ago quarter.
Guidance
For 2022, the company now expects adjusted earnings per share (EPS) to be at or near the high end of the prior guidance range of $1.55-$1.65. The Zacks Consensus Estimate for earnings for the current year is pegged at $1.61.
The company reaffirmed the 7-9% average annual growth target through 2025.
Zacks Rank
AES Corp. currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted EPS came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%. The bottom line also increased 15.9% from $1.70 in the prior-year quarter.
In the quarter under review, Sempra’s total revenues of $3,617 million increased 20% year over year on higher contributions from the Natural Gas business (up 26.5%), Electric business (up 4%) as well as Energy-related businesses (up 48.6%).
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.
FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.