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AES to Announce Q2 Earnings: Here's What You Need to Know

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The AES Corporation (AES - Free Report) is scheduled to release its second-quarter 2024 results on Aug 1 after market close. The company delivered an earnings surprise of 56.25% in the last reported quarter.

The company holds a four-quarter average earnings surprise of 13.79%.  Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

In the second quarter, AES’ service territories witnessed a mostly warmer-than-normal weather pattern. Such a weather pattern is expected to have boosted electricity demand for cooling purposes this spring. This must have favorably contributed to the company’s top-line performance in the soon-to-be-reported quarter.

The AES Corporation Price and EPS Surprise

The AES Corporation Price and EPS Surprise

The AES Corporation price-eps-surprise | The AES Corporation Quote

However, a few tornadoes and thunderstorms affected some parts of the company’s service areas, which may have led to outages for its customers. This, in turn, is likely to have some impact on AES’ overall revenues in the quarter to be reported.

The Zacks Consensus Estimate for AES’ second-quarter sales stands at $3.17 billion, which suggests an increase of 4.7% from the year-ago reported number.

The tornadoes and thunderstorms during the second quarter might have resulted in infrastructural damage for this electricity provider, thereby increasing its quarterly operating expenses. This, in turn, is likely to have hurt AES’ second-quarter earnings.

However, the company’s cost savings initiatives, as well as favorable returns from its renewable projects, are likely to have bolstered earnings amid the adverse impacts of higher interest expenses.

The Zacks Consensus Estimate for AES’ second-quarter earnings is pegged at 33 cents per share, which implies an increase of 57.1% from the second-quarter 2023 reported figure.

Favorable contributions from its asset sale program might have boosted its cash balance.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for AES this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: AES has an Earnings ESP of +10.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, AES carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Below, we have mentioned the following players from the same industry who also have the right combination of elements to beat on earnings in the upcoming releases.

Xcel Energy Inc. (XEL - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +6.12% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for XEL’s second-quarter earnings stands at 49 cents per share. The Zacks Consensus Estimate for XEL Energy’s second-quarter sales is pegged at $3.23 billion, which implies a 6.8% increase from that reported in the prior-year quarter.

Dominion Energy, Inc. (D - Free Report) is expected to report its second-quarter 2024 results on Aug 1 before market close. It has an Earnings ESP of +1.72% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for D’s second-quarter earnings stands at 58 cents per share, which suggests a 9.4% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $3.79 billion.

The Southern Company (SO - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.38% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for SO’s second-quarter earnings stands at 91 cents per share, which suggests a 15.2% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $6.27 billion, which implies a 9.1% increase from that reported in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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