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AES Corp (AES) Q1 Earnings Miss Estimates, Revenues Down Y/Y

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AES Corporation’s (AES - Free Report) first-quarter 2020 adjusted earnings of 29 cents per share missed the Zacks Consensus Estimate of 32 cents by 9.4%. However, earnings increased 3.6% from the year-ago quarter’s 28 cents.
 
Barring a one-time adjustment, the company delivered GAAP earnings of 22 cents per share in the reported quarter compared with 23 cents in the prior-year period.

Highlights of the Release
 
AES Corp. generated total revenues of $2.34 billion in the first quarter, down 11.8% year over year. The top line also lagged the Zacks Consensus Estimate of $2.66 million by 12%.
 
Total cost of sales was $1,831 million in the first quarter, down 11.3% year over year. General and administrative expenses were $38 million, 17.4% lower than the year-ago quarter’s $46 million.
 
Operating income stood at $507 million, down from $586 million in the year-ago period.
 
Interest expenses summed $233 million, down from $265 million in the year-earlier period.
 
AES Corp. signed long-term contracts for 685 MW of renewable capacity, bringing the backlog to 5.3 GW.
 
The company also completed construction of 1.4 GW of new projects, including the 1.3 GW Southland Repowering project in Southern California.

The AES Corporation Price, Consensus and EPS Surprise

Financial Condition

AES Corp. reported cash and cash equivalents of $1,544 million as of Mar 31, 2020, compared with $1,029 million as of Dec 31, 2019.

Non-recourse debt totaled $15,360 million as of Mar 31, up from $14,914 million as of Dec 31.
 
In the first quarter of 2020, cash from operating activities was $373 million compared with the year-ago quarter’s $690 million.
 
Total capital expenditures during the first quarter amounted to $504 million, which increased from $494 million incurred in the year-ago quarter.
 
Guidance
 
For 2020, AES Corp. has reduced the midpoint of its adjusted EPS guidance by 5% per share, to a range of $1.32-$1.42. The Zacks Consensus Estimate for 2020 earnings is pegged at $1.42, which is above the midpoint of the company’s guided range.
 
AES Corp. also reaffirms its 2020 Parent Free Cash Flow expectation of $725-$775 million and the average annual growth rate target of 7-9% through 2022.
 
Zacks Rank
 
AES Corp. currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

CMS Energy Corporation (CMS - Free Report) reported first-quarter 2020 adjusted EPS of 86 cents, which surpassed the Zacks Consensus Estimate of 77 cents by 11.7%.

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