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AES Corp (AES) Q3 Earnings Beat Estimates, Revenues Miss

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AES Corporation’s (AES - Free Report) third-quarter 2018 adjusted earnings per share of 35 cents surpassed the Zacks Consensus Estimate of 29 cents by 20.7%. Moreover, the bottom line soared 52.2% from the year-ago period’s figure.

Barring one-time adjustments, the company delivered GAAP earnings of 15 cents in the reported quarter compared with 22 cents in the prior-year period.

Highlights of the Release

AES Corp generated total revenues of $2,837 million in the third quarter, up 5.3% year over year. However, the top line lagged the Zacks Consensus Estimate of $3,559 million by 20.3%.

Total cost of sales was $2,166 million in the third quarter, up 5.5% year over year. General and administrative expenses were $43 million, 17.3% lower than the year-ago quarter’s level of $52 million.

Operating income grew 4.8% year over year to $671 million.

Interest expenses in the quarter under review were $255 million, lower than $297 million in the year-earlier period.

The AES Corporation Price, Consensus and EPS Surprise

Financial Condition

AES Corp reported cash and cash equivalents of $1,187 million as of Sep 30, 2018 compared with $949 million as of Dec 31, 2017.

Non-recourse debt totaled $14,273 million as of Sep 30, 2018, up from $13,176 million as of Dec 31, 2017.

In the third quarter, cash from operating activities was $767 million compared with the year-ago period’s $739 million.

Total capital expenditure in the third quarter was $598 million, which came in above $464 million that the company incurred a year ago.

Guidance

For 2018, AES Corp reaffirmed its adjusted earnings per share outlook in the range of $1.15-$1.25.

Zacks Rank

AES Corp has a Zacks Rank #2 (Buy). 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 third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

NextEra Energy (NEE - Free Report) posted third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

American Electric Power (AEP - Free Report) released third-quarter 2018 operating earnings per share of $1.26, surpassing the Zacks Consensus Estimate of $1.23 by 2.4%.

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