We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AES Corp (AES) Misses on Q3 Earnings, Reaffirms '17 Outlook
Read MoreHide Full Article
The AES Corporation’s (AES - Free Report) third-quarter 2017 adjusted earnings per share of 24 cents missed the Zacks Consensus Estimate of 29 cents by 17.2%. Moreover, the bottom line declined 25% from the year-ago period’s figure of 32 cents, hurt by higher quarterly tax rate and the recent hurricanes in the Caribbean.
Barring one-time adjustments, the company’s third-quarter reported earnings were 23 cents compared with the year-ago figure of 26 cents.
Highlights of the Release
AES Corp. generated total revenues of $3,632 million in the third quarter, up 2.5% year over year. The top line surpassed the Zacks Consensus Estimate of $3,542 million by 2.5%.
Total cost of sales was $2,921 million, up 2.3% year over year. General and administrative expenses were $52 million, higher than the year-ago level of $40 million.
Operating income was up 3.3% to $711 million.
Interest expenses in the quarter were $353 million, slightly down from $354 million in the year-ago quarter.
The AES Corporation Price, Consensus and EPS Surprise
AES Corp. reported cash and cash equivalents of $1,398 million as of Sep 30 compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,822 million as of Sep 30, up from $14,489 million as of Dec 31, 2016.
In the third quarter, cash from operating activities was $735 million compared with the year-ago figure of $819 million.
Total capital expenditure in the period was $503 million, lower than $536 million a year ago.
Consolidated free cash flow was $601 million in the third quarter, down from $665 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00-$1.10.
The company still expects 2017 consolidated free cash flow guidance in the band of $1,400-$2,000 million.
Zacks Rank
AES Corp. has a Zacks Rank #4 (Sell).
Recent Peer Releases
Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number also improved 1.7% from the year-ago figure. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48 missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96. The company holds a Zacks Rank #2 (Buy).
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating EPS of $1.10 missed the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 reported a year ago. The company carries a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Image: Bigstock
AES Corp (AES) Misses on Q3 Earnings, Reaffirms '17 Outlook
The AES Corporation’s (AES - Free Report) third-quarter 2017 adjusted earnings per share of 24 cents missed the Zacks Consensus Estimate of 29 cents by 17.2%. Moreover, the bottom line declined 25% from the year-ago period’s figure of 32 cents, hurt by higher quarterly tax rate and the recent hurricanes in the Caribbean.
Barring one-time adjustments, the company’s third-quarter reported earnings were 23 cents compared with the year-ago figure of 26 cents.
Highlights of the Release
AES Corp. generated total revenues of $3,632 million in the third quarter, up 2.5% year over year. The top line surpassed the Zacks Consensus Estimate of $3,542 million by 2.5%.
Total cost of sales was $2,921 million, up 2.3% year over year. General and administrative expenses were $52 million, higher than the year-ago level of $40 million.
Operating income was up 3.3% to $711 million.
Interest expenses in the quarter were $353 million, slightly down from $354 million in the year-ago quarter.
The AES Corporation Price, Consensus and EPS Surprise
The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote
Financial Condition
AES Corp. reported cash and cash equivalents of $1,398 million as of Sep 30 compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,822 million as of Sep 30, up from $14,489 million as of Dec 31, 2016.
In the third quarter, cash from operating activities was $735 million compared with the year-ago figure of $819 million.
Total capital expenditure in the period was $503 million, lower than $536 million a year ago.
Consolidated free cash flow was $601 million in the third quarter, down from $665 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00-$1.10.
The company still expects 2017 consolidated free cash flow guidance in the band of $1,400-$2,000 million.
Zacks Rank
AES Corp. has a Zacks Rank #4 (Sell).
Recent Peer Releases
Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number also improved 1.7% from the year-ago figure. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48 missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96. The company holds a Zacks Rank #2 (Buy).
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating EPS of $1.10 missed the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 reported a year ago. The company carries a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>