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AES Corp. (AES) Up 5% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for The AES Corporation (AES - Free Report) . Shares have added about 5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AES Corp. Misses on Q1 Earnings, Reaffirms '17 Outlook
AES Corp.’s first-quarter 2017 adjusted earnings per share of $0.17 missed the Zacks Consensus Estimate of $0.20 by 15%. However, earnings improved 13.3% from $0.15 in the year-ago period.
Barring the one-time adjustments, the company’s first-quarter loss was $0.04 against the year-ago earnings of $0.20.
Highlights of the Release
AES Corp. generated total revenue of $3,492 million in the first quarter, up 0.6% year over year. The top line, however, missed the Zacks Consensus Estimate of $3,534 million by 1.2%.
In the reported quarter, total cost of sales was $2,899 million, up 5% year over year. General and administrative expenses were $54 million, higher than the year-ago level of $48 million.
Operating income was up 16.5% to $593 million.
Interest expenses in the quarter were $348 million, up from $342 million in the year-ago quarter.
Financial Condition
AES Corp. reported cash and cash equivalents of $1,588 million as of Mar 31, 2017 compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,697 million as of Mar 31, 2017, up from $14,489 million as of Dec 31, 2016.
In the first quarter, cash from operating activities was $703 million compared with $640 million a year ago.
Total capital expenditure in the period was $500 million, lower than $650 million a year ago.
Proportional free cash flow, a non-GAAP measure, was $546 million in the first quarter, up from $490 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00-$1.05.
The company still expects 2017 consolidated free cash flow guidance in the band of $1,400-$2,000 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, the stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'C'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is more suitable for value and growth investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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AES Corp. (AES) Up 5% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for The AES Corporation (AES - Free Report) . Shares have added about 5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AES Corp. Misses on Q1 Earnings, Reaffirms '17 Outlook
AES Corp.’s first-quarter 2017 adjusted earnings per share of $0.17 missed the Zacks Consensus Estimate of $0.20 by 15%. However, earnings improved 13.3% from $0.15 in the year-ago period.
Barring the one-time adjustments, the company’s first-quarter loss was $0.04 against the year-ago earnings of $0.20.
Highlights of the Release
AES Corp. generated total revenue of $3,492 million in the first quarter, up 0.6% year over year. The top line, however, missed the Zacks Consensus Estimate of $3,534 million by 1.2%.
In the reported quarter, total cost of sales was $2,899 million, up 5% year over year. General and administrative expenses were $54 million, higher than the year-ago level of $48 million.
Operating income was up 16.5% to $593 million.
Interest expenses in the quarter were $348 million, up from $342 million in the year-ago quarter.
Financial Condition
AES Corp. reported cash and cash equivalents of $1,588 million as of Mar 31, 2017 compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,697 million as of Mar 31, 2017, up from $14,489 million as of Dec 31, 2016.
In the first quarter, cash from operating activities was $703 million compared with $640 million a year ago.
Total capital expenditure in the period was $500 million, lower than $650 million a year ago.
Proportional free cash flow, a non-GAAP measure, was $546 million in the first quarter, up from $490 million in the year-ago quarter.
Guidance
AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00-$1.05.
The company still expects 2017 consolidated free cash flow guidance in the band of $1,400-$2,000 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
The AES Corporation Price and Consensus
The AES Corporation Price and Consensus | The AES Corporation Quote
VGM Scores
At this time, the stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'C'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is more suitable for value and growth investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.