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The AES Corporation’s (AES - Free Report) fourth-quarter 2022 adjusted earnings of 49 cents per share beat the Zacks Consensus Estimate of 46 cents by 6.5%. Earnings also improved 8.9% from the 45 cents reported in the year-ago quarter.
The company generated a GAAP loss of $1.27 per share compared with the 89 cents incurred in the fourth quarter of 2021.
For the full-year 2022, AES reported adjusted earnings of $1.67 per share, which surpassed the Zacks Consensus Estimate of $1.65 by 1.2%. Moreover, adjusted earnings increased 9.9% year over year.
Total Revenues
Total revenues came in at $3,060 million in the reported quarter, which improved 10.5% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $2,882.1 million by 6.2%.
For the full-year 2022, total revenues came in at $12.62 billion, surpassing the Zacks Consensus Estimate of $12.44 billion. Moreover, net sales increased 1.4% year over year.
The AES Corporation Price, Consensus and EPS Surprise
The total cost of sales was $2,497 million in the fourth quarter, up 12.9% year over year.
The operating income came in at $563 million, up 0.7% from $559 million in the year-ago period.
Interest expenses totaled $304 million, up 25.6% from $242 million in the year-earlier period.
AES Corp. signed 5.2 GW of power purchase agreements for new renewable energy projects as of Dec 31, 2022, bringing the company's backlog to 12.2 GW.
Financial Condition
AES Corp. had cash and cash equivalents of $1,374 million as of Dec 31, 2022 compared with $943 million on Dec 31, 2021.
Non-recourse debt totaled $17,846 million as of Dec 31, 2022, up from $13,603 million as of Dec 31, 2021.
In the fourth quarter, AES generated cash from operating activities worth $1,066 million compared with the year-ago figure of $523 million.
The total capital expenditure for the fourth quarter amounted to $1,840 million, which increased substantially from the $582 million incurred in the year-ago quarter.
Guidance
For 2023, AES initiated earnings guidance and expects adjusted earnings per share (EPS) to be at or near the high end of the prior guidance range of $1.65-$1.75. The Zacks Consensus Estimate for earnings for 2023 is pegged at $1.75, which is higher than the midpoint of the company’s guided range.
The company reaffirmed the 7-9% average annual growth target through 2025.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 26 cents for the fourth quarter of 2022 lagged the Zacks Consensus Estimate of 28 cents by 7.1%. The bottom line also decreased 7.1% from the year-ago quarter’s reported figure.
For the full-year 2022, PSEG reported total revenues of $21.68 billion compared with $20.64 billion in the year-ago period. Operating revenues lagged the Zacks Consensus Estimate of $22.01 billion by 1.5%.
DTE Energy Company (DTE - Free Report) reported a fourth-quarter 2022 operating EPS of $1.31, which surpassed the Zacks Consensus Estimate of $1.22 by 7.4%. The bottom line also increased 24.8% from the year-ago quarter’s $1.05 per share.
The operating net income in the reported quarter totaled $266 million compared with $265 million in the year-ago quarter.
Hawaiian Electric Industries, Inc. (HE - Free Report) reported an EPS of 52 cents in the fourth quarter of 2022. The bottom line improved 4% from 50 cents per share in the prior-year quarter.
Hawaiian Electric’s total revenues of $1,019.1 million in the fourth quarter improved 32.3% from the prior-year quarter’s $770.3 million. The rise in revenues can be attributed to increased contributions from the Electric Utility, Bank and other segments.
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AES Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
The AES Corporation’s (AES - Free Report) fourth-quarter 2022 adjusted earnings of 49 cents per share beat the Zacks Consensus Estimate of 46 cents by 6.5%. Earnings also improved 8.9% from the 45 cents reported in the year-ago quarter.
The company generated a GAAP loss of $1.27 per share compared with the 89 cents incurred in the fourth quarter of 2021.
For the full-year 2022, AES reported adjusted earnings of $1.67 per share, which surpassed the Zacks Consensus Estimate of $1.65 by 1.2%. Moreover, adjusted earnings increased 9.9% year over year.
Total Revenues
Total revenues came in at $3,060 million in the reported quarter, which improved 10.5% year over year due to higher regulated and non-regulated revenues. Revenues also beat the Zacks Consensus Estimate of $2,882.1 million by 6.2%.
For the full-year 2022, total revenues came in at $12.62 billion, surpassing the Zacks Consensus Estimate of $12.44 billion. Moreover, net sales increased 1.4% year over year.
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 $2,497 million in the fourth quarter, up 12.9% year over year.
The operating income came in at $563 million, up 0.7% from $559 million in the year-ago period.
Interest expenses totaled $304 million, up 25.6% from $242 million in the year-earlier period.
AES Corp. signed 5.2 GW of power purchase agreements for new renewable energy projects as of Dec 31, 2022, bringing the company's backlog to 12.2 GW.
Financial Condition
AES Corp. had cash and cash equivalents of $1,374 million as of Dec 31, 2022 compared with $943 million on Dec 31, 2021.
Non-recourse debt totaled $17,846 million as of Dec 31, 2022, up from $13,603 million as of Dec 31, 2021.
In the fourth quarter, AES generated cash from operating activities worth $1,066 million compared with the year-ago figure of $523 million.
The total capital expenditure for the fourth quarter amounted to $1,840 million, which increased substantially from the $582 million incurred in the year-ago quarter.
Guidance
For 2023, AES initiated earnings guidance and expects adjusted earnings per share (EPS) to be at or near the high end of the prior guidance range of $1.65-$1.75. The Zacks Consensus Estimate for earnings for 2023 is pegged at $1.75, which is higher than the midpoint of the company’s guided range.
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
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 26 cents for the fourth quarter of 2022 lagged the Zacks Consensus Estimate of 28 cents by 7.1%. The bottom line also decreased 7.1% from the year-ago quarter’s reported figure.
For the full-year 2022, PSEG reported total revenues of $21.68 billion compared with $20.64 billion in the year-ago period. Operating revenues lagged the Zacks Consensus Estimate of $22.01 billion by 1.5%.
DTE Energy Company (DTE - Free Report) reported a fourth-quarter 2022 operating EPS of $1.31, which surpassed the Zacks Consensus Estimate of $1.22 by 7.4%. The bottom line also increased 24.8% from the year-ago quarter’s $1.05 per share.
The operating net income in the reported quarter totaled $266 million compared with $265 million in the year-ago quarter.
Hawaiian Electric Industries, Inc. (HE - Free Report) reported an EPS of 52 cents in the fourth quarter of 2022. The bottom line improved 4% from 50 cents per share in the prior-year quarter.
Hawaiian Electric’s total revenues of $1,019.1 million in the fourth quarter improved 32.3% from the prior-year quarter’s $770.3 million. The rise in revenues can be attributed to increased contributions from the Electric Utility, Bank and other segments.