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What Awaits The AES Corporation (AES) This Earnings Season?
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The AES Corporation (AES - Free Report) is slated to report its fourth-quarter and full-year 2022 results on Feb 24 after market close.
Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.58%.
Factors to Note
In the fourth quarter of 2022, AES’ service territories witnessed a mixed weather condition. While some parts of its territories experienced warm and dry weather conditions, other parts experienced normal precipitation levels accompanied by snowfall. Such a mixed weather pattern can be expected to have a moderate impact on the company’s overall revenues in the fourth quarter.
Strong LNG sales and strength in new businesses, coupled with increased ownership in AES Andes, are likely to have benefitted overall revenues in the fourth quarter of 2022.
However, some parts of its service territories witnessed 20 wildfire activities in November. Meanwhile, in December, strong wind gusts affected some of its service areas, which might have led to power outages for its customers. These, along with the aftereffects of Hurricane Nicole, might have partially dampened AES’ fourth-quarter top line.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.88 billion. This suggests an increase of 4.1% from the year-ago quarter.
Strong sales, coupled with strength in margins in Brazil and AES Andes, may have continued to boost its overall margins, thus aiding its bottom line in the fourth quarter. Additionally, new tax credits, buoyed by the Inflation Reduction Act, may have added impetus to its fourth-quarter bottom line.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 46 cents per share. This indicates growth of 2.2% from the prior-year reported figure.
Our proven model does not conclusively predict an earnings beat for AES 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.
Earnings ESP: AES’ Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #3. The Zacks Consensus Estimate for DTE Energy’s fourth-quarter revenues is pegged at $4.07 billion, suggesting a decline of 12.4% from the year-ago quarter.
The Zacks Consensus Estimate for DTE’s fourth-quarter earnings is pegged at $1.22 per share, indicating growth of 16.2% from the prior-year reported figure.
Edison International (EIX - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.08 per share, implies a decline of 6.9% from the prior-year quarter’s tally.
EIX has a four-quarter earnings surprise of 14.88%. The Zacks Consensus Estimate for Edison’s fourth-quarter sales suggests a growth rate of 8.9% from the prior-year quarter’s tally.
Sempra (SRE - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $2.06 per share, suggests a decline of 4.6% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales implies a decrease of 0.8% from the prior-year quarter figure. Sempra has a four-quarter earnings surprise of 6.88%.
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What Awaits The AES Corporation (AES) This Earnings Season?
The AES Corporation (AES - Free Report) is slated to report its fourth-quarter and full-year 2022 results on Feb 24 after market close.
Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.58%.
Factors to Note
In the fourth quarter of 2022, AES’ service territories witnessed a mixed weather condition. While some parts of its territories experienced warm and dry weather conditions, other parts experienced normal precipitation levels accompanied by snowfall. Such a mixed weather pattern can be expected to have a moderate impact on the company’s overall revenues in the fourth quarter.
Strong LNG sales and strength in new businesses, coupled with increased ownership in AES Andes, are likely to have benefitted overall revenues in the fourth quarter of 2022.
However, some parts of its service territories witnessed 20 wildfire activities in November. Meanwhile, in December, strong wind gusts affected some of its service areas, which might have led to power outages for its customers. These, along with the aftereffects of Hurricane Nicole, might have partially dampened AES’ fourth-quarter top line.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.88 billion. This suggests an increase of 4.1% from the year-ago quarter.
Strong sales, coupled with strength in margins in Brazil and AES Andes, may have continued to boost its overall margins, thus aiding its bottom line in the fourth quarter. Additionally, new tax credits, buoyed by the Inflation Reduction Act, may have added impetus to its fourth-quarter bottom line.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 46 cents per share. This indicates growth of 2.2% from the prior-year reported figure.
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 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.
Earnings ESP: AES’ 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 carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #3. The Zacks Consensus Estimate for DTE Energy’s fourth-quarter revenues is pegged at $4.07 billion, suggesting a decline of 12.4% from the year-ago quarter.
The Zacks Consensus Estimate for DTE’s fourth-quarter earnings is pegged at $1.22 per share, indicating growth of 16.2% from the prior-year reported figure.
Edison International (EIX - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.08 per share, implies a decline of 6.9% from the prior-year quarter’s tally.
EIX has a four-quarter earnings surprise of 14.88%. The Zacks Consensus Estimate for Edison’s fourth-quarter sales suggests a growth rate of 8.9% from the prior-year quarter’s tally.
Sempra (SRE - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $2.06 per share, suggests a decline of 4.6% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales implies a decrease of 0.8% from the prior-year quarter figure. Sempra has a four-quarter earnings surprise of 6.88%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.