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The AES Corporation’s (AES - Free Report) third-quarter 2016 adjusted earnings per share of 32 cents missed the Zacks Consensus Estimate of 33 cents by a penny. Also, quarterly earnings plunged 15.8% from the year-ago level of 38 cents, primarily due to lower equity by 6 cents in earnings of affiliates from the restructuring at Guacolda.
Barring the one-time adjustments, the company’s third-quarter earnings were 26 cents, in line with the year-ago figure.
AES Corp. generated total revenue of $3,542 million in the third quarter, up 0.6% year over year. The top line however missed the Zacks Consensus Estimate of $3,848 million by 8%.
In the reported quarter, total cost of sales was $2,854 million, down 0.1% year over year. General and administrative expenses were $40 million, lower than the year-ago level of $45 million. Operating income was up 3.5% to $688 million. Operating margin was 19.4%, up 60 basis points from 18.8% a year ago.
Interest expenses in the quarter were $354 million, down from $365 million in the year-ago quarter.
AES Corp. reported cash and cash equivalents of $1,325 million as of Sep 30, 2016, compared with $1,257 million as of Dec 31, 2015. Non-recourse debt totaled $14,796 million as of Sep 30, 2016, up from $12,943 million as of Dec 31, 2015.
In the first nine months of 2016, cash from operating activities was $2,182 million, compared with $1,505 million a year ago. Total capital expenditure in the period was $1,770 million, higher than $1,687 million a year ago.
Proportional free cash flow, a non-GAAP measure, was $400 million in the third quarter, down from $621 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2016 at the range of 95 cents to $1.05.
The company also continues to expect 2016 proportional free cash flow guidance in the range of $1,000 million to $1,350 million.
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
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(We have revised this article to correct a mistake. The previous version, published earlier today, should not be relied upon.)
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AES Corp. (AES) Misses Q3 Earnings, Keeps '16 View (Revised)
The AES Corporation’s (AES - Free Report) third-quarter 2016 adjusted earnings per share of 32 cents missed the Zacks Consensus Estimate of 33 cents by a penny. Also, quarterly earnings plunged 15.8% from the year-ago level of 38 cents, primarily due to lower equity by 6 cents in earnings of affiliates from the restructuring at Guacolda.
Barring the one-time adjustments, the company’s third-quarter earnings were 26 cents, in line with the year-ago figure.
Highlights of the Release
AES Corp. generated total revenue of $3,542 million in the third quarter, up 0.6% year over year. The top line however missed the Zacks Consensus Estimate of $3,848 million by 8%.
In the reported quarter, total cost of sales was $2,854 million, down 0.1% year over year. General and administrative expenses were $40 million, lower than the year-ago level of $45 million. Operating income was up 3.5% to $688 million. Operating margin was 19.4%, up 60 basis points from 18.8% a year ago.
Interest expenses in the quarter were $354 million, down from $365 million in the year-ago quarter.
AES CORP Price, Consensus and EPS Surprise
AES CORP Price, Consensus and EPS Surprise | AES CORP Quote
Financial Condition
AES Corp. reported cash and cash equivalents of $1,325 million as of Sep 30, 2016, compared with $1,257 million as of Dec 31, 2015. Non-recourse debt totaled $14,796 million as of Sep 30, 2016, up from $12,943 million as of Dec 31, 2015.
In the first nine months of 2016, cash from operating activities was $2,182 million, compared with $1,505 million a year ago. Total capital expenditure in the period was $1,770 million, higher than $1,687 million a year ago.
Proportional free cash flow, a non-GAAP measure, was $400 million in the third quarter, down from $621 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2016 at the range of 95 cents to $1.05.
The company also continues to expect 2016 proportional free cash flow guidance in the range of $1,000 million to $1,350 million.
Zacks Rank
AES Corp. presently carries a Zacks Rank #3 (Hold).You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
(We have revised this article to correct a mistake. The previous version, published earlier today, should not be relied upon.)