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The AES Corporation’s (AES - Free Report) first-quarter 2024 adjusted earnings of 50 cents per share beat the Zacks Consensus Estimate of 32 cents by 56.3%. The bottom line also improved 127.3% from 22 cents reported in the year-ago quarter.
The year-over-year improvement can be attributed to a lower adjusted tax rate and higher contributions from renewables projects placed in service in 2024.
The company generated a GAAP earnings of 60 cents per share compared with 21 cents in the first quarter of 2023. This improvement was driven by lower income tax expense, higher contributions from renewables projects placed in service in 2024, and a gain on dilution of the company’s interest in Uplight.
The AES Corporation Price, Consensus and EPS Surprise
The top line amounted to $3.09 billion, down 4.8% year over year due to lower regulated and non-regulated revenues. The figure also missed the Zacks Consensus Estimate of $3.24 billion by 4.9%.
Highlights of the Release
The total cost of sales was $2.47 billion in the reported quarter, down 6.8% year over year.
The operating income totaled $619 million, up 4.2% from $594 million in the year-ago period.
Interest expenses amounted to $357 million, up 8.2% from $330 million in the prior-year quarter.
During the first quarter, the company signed 1.2 gigawatts (GW) of renewables and energy storage under long-term contracts, thereby bringing the backlog for renewable energy projects to 12.7 gigawatts (GW) as of Mar 31, 2024. This backlog included 5.8 GW of projects under construction.
Financial Condition
AES had cash and cash equivalents of $1.99 billion as of Mar 31, 2024, compared with $1.43 billion as of Dec 31, 2023.
Non-recourse debt totaled $20.28 billion as of Mar 31, 2024, up from $18.48 billion as of Dec 31, 2023.
During the first quarter, AES generated cash from operating activities worth $287 million compared with the year-ago figure of $625 million.
Total capital expenditure was $2.15 billion, up from $1.62 billion recorded a year ago.
2024 Guidance
AES reaffirmed its earnings guidance for the year. It still expects adjusted earnings per share (EPS) to be in the range of $1.87-$1.97. The Zacks Consensus Estimate for the same is pegged at $1.91, which lies just below the mid-point of the company’s guided range.
AES also reiterated its average annual earnings growth target of 7-9% through 2027.
DTE Energy Company (DTE - Free Report) reported first-quarter 2024 operating EPS of $1.67, which missed the Zacks Consensus Estimate of $1.71 by 2.3%. However, the bottom line improved 25.6% from the year-ago quarter’s reported figure of $1.33.
DTE Energy reiterated its 2024 operating EPS projection. The company still expects operating EPS to be in the range of $6.54-$6.83.
Entergy Corporation (ETR - Free Report) reported first-quarter 2024 adjusted earnings of $1.08 per share, which missed the Zacks Consensus Estimate of $1.44 by 25%. The bottom line was also down 5.3% from the prior-year quarter’s level of $1.14.
ETR’s operating revenues totaled $2.79 billion, which lagged the Zacks Consensus Estimate of $3.18 billion by 12%. The top line also declined 6.3% from $2.98 billion reported in the year-ago quarter.
Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported first-quarter 2024 adjusted earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.32 by 0.8%.
Operating revenues in the first quarter totaled $2.76 billion, which beat the Zacks Consensus Estimate of $2.65 billion by 4.1%. The top line, however, declined 26.5% from the year-ago quarter’s figure of $3.76 billion.
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AES' Q1 Earnings Outpace Estimate, Revenues Decline Y/Y
The AES Corporation’s (AES - Free Report) first-quarter 2024 adjusted earnings of 50 cents per share beat the Zacks Consensus Estimate of 32 cents by 56.3%. The bottom line also improved 127.3% from 22 cents reported in the year-ago quarter.
The year-over-year improvement can be attributed to a lower adjusted tax rate and higher contributions from renewables projects placed in service in 2024.
The company generated a GAAP earnings of 60 cents per share compared with 21 cents in the first quarter of 2023. This improvement was driven by lower income tax expense, higher contributions from renewables projects placed in service in 2024, and a gain on dilution of the company’s interest in Uplight.
The AES Corporation Price, Consensus and EPS Surprise
The AES Corporation price-consensus-eps-surprise-chart | The AES Corporation Quote
Total Revenues
The top line amounted to $3.09 billion, down 4.8% year over year due to lower regulated and non-regulated revenues. The figure also missed the Zacks Consensus Estimate of $3.24 billion by 4.9%.
Highlights of the Release
The total cost of sales was $2.47 billion in the reported quarter, down 6.8% year over year.
The operating income totaled $619 million, up 4.2% from $594 million in the year-ago period.
Interest expenses amounted to $357 million, up 8.2% from $330 million in the prior-year quarter.
During the first quarter, the company signed 1.2 gigawatts (GW) of renewables and energy storage under long-term contracts, thereby bringing the backlog for renewable energy projects to 12.7 gigawatts (GW) as of Mar 31, 2024. This backlog included 5.8 GW of projects under construction.
Financial Condition
AES had cash and cash equivalents of $1.99 billion as of Mar 31, 2024, compared with $1.43 billion as of Dec 31, 2023.
Non-recourse debt totaled $20.28 billion as of Mar 31, 2024, up from $18.48 billion as of Dec 31, 2023.
During the first quarter, AES generated cash from operating activities worth $287 million compared with the year-ago figure of $625 million.
Total capital expenditure was $2.15 billion, up from $1.62 billion recorded a year ago.
2024 Guidance
AES reaffirmed its earnings guidance for the year. It still expects adjusted earnings per share (EPS) to be in the range of $1.87-$1.97. The Zacks Consensus Estimate for the same is pegged at $1.91, which lies just below the mid-point of the company’s guided range.
AES also reiterated its average annual earnings growth target of 7-9% through 2027.
Zacks Rank
AES currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
DTE Energy Company (DTE - Free Report) reported first-quarter 2024 operating EPS of $1.67, which missed the Zacks Consensus Estimate of $1.71 by 2.3%. However, the bottom line improved 25.6% from the year-ago quarter’s reported figure of $1.33.
DTE Energy reiterated its 2024 operating EPS projection. The company still expects operating EPS to be in the range of $6.54-$6.83.
Entergy Corporation (ETR - Free Report) reported first-quarter 2024 adjusted earnings of $1.08 per share, which missed the Zacks Consensus Estimate of $1.44 by 25%. The bottom line was also down 5.3% from the prior-year quarter’s level of $1.14.
ETR’s operating revenues totaled $2.79 billion, which lagged the Zacks Consensus Estimate of $3.18 billion by 12%. The top line also declined 6.3% from $2.98 billion reported in the year-ago quarter.
Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported first-quarter 2024 adjusted earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.32 by 0.8%.
Operating revenues in the first quarter totaled $2.76 billion, which beat the Zacks Consensus Estimate of $2.65 billion by 4.1%. The top line, however, declined 26.5% from the year-ago quarter’s figure of $3.76 billion.