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AES Corp. (AES) Misses Q3 Earnings, Keeps '16 View (Revised)

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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.

 

 

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.

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(We have revised this article to correct a mistake. The previous version, published earlier today, should not be relied upon.)