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AES Corp (AES) Down 2.4% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for The AES Corporation (AES - Free Report) . Shares have lost about 2.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is AES due for a breakout? 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 drivers.
AES Corp Beats on Q4 Earnings, Issues '18 Outlook
AES Corp’s fourth-quarter 2017 adjusted earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 32 cents by 34.4%. Moreover, the bottom line improved 43.3% from the year-ago period’s figure of 30 cents.
Barring one-time adjustments, the company incurred loss of $1.03 in the fourth quarter compared with the year-ago period’s loss of 35 cents.
In 2017, the company posted adjusted earnings per share of $1.08, which surpassed the Zacks Consensus Estimate of $1.02. Moreover, the reported figure improved from the prior year’s figure of 94 cents.
Highlights of the Release
AES Corp generated total revenues of $2,643 million in the fourth quarter, down 0.6% year over year. The top line also missed the Zacks Consensus Estimate of $3,672 million by 28%.
In 2017, the company generated total revenues of $10.53 billion, up 2.4% from the prior year’s figure of $10.3 billion. The top line, however, missed the Zacks Consensus Estimate of $14.05 billion.
Total cost of sales was $2,000 million in the fourth quarter, down 1.4% year over year. General and administrative expenses were $60 million, marginally higher than the year-ago level of $59 million.
Operating income was up 1.7% to $643 million.
Interest expenses in the quarter were $310 million, up from $283 million in the year-ago quarter.
Financial Condition
AES Corp reported cash and cash equivalents of $949 million as of Dec 31, 2017 compared with $1,244 million as of Dec 31, 2016. Non-recourse debt totaled $13,176 million as of Dec 31, 2017 down from $13,731 million as of Dec 31, 2016.
In 2017, cash from operating activities was $2,489 million compared with the year-ago figure of $2,884 million.
Total capital expenditure in 2017 was $2,356 million, lower than $2,458 million a year ago.
Consolidated free cash flow was $1,921 million at 2017-end, down from $2,244 million at the end of 2016.
Guidance
For 2018, AES Corp provided its adjusted earnings per share guidance in the range of $1.15-$1.25.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
At this time, AES has a nice Growth Score of B, however its Momentum is doing a bit better with an A. The stock was also 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.
Based on our scores, the stock is more suitable for value and momentum investors than growth investors.
Outlook
AES has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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AES Corp (AES) Down 2.4% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for The AES Corporation (AES - Free Report) . Shares have lost about 2.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is AES due for a breakout? 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 drivers.
AES Corp Beats on Q4 Earnings, Issues '18 Outlook
AES Corp’s fourth-quarter 2017 adjusted earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 32 cents by 34.4%. Moreover, the bottom line improved 43.3% from the year-ago period’s figure of 30 cents.
Barring one-time adjustments, the company incurred loss of $1.03 in the fourth quarter compared with the year-ago period’s loss of 35 cents.
In 2017, the company posted adjusted earnings per share of $1.08, which surpassed the Zacks Consensus Estimate of $1.02. Moreover, the reported figure improved from the prior year’s figure of 94 cents.
Highlights of the Release
AES Corp generated total revenues of $2,643 million in the fourth quarter, down 0.6% year over year. The top line also missed the Zacks Consensus Estimate of $3,672 million by 28%.
In 2017, the company generated total revenues of $10.53 billion, up 2.4% from the prior year’s figure of $10.3 billion. The top line, however, missed the Zacks Consensus Estimate of $14.05 billion.
Total cost of sales was $2,000 million in the fourth quarter, down 1.4% year over year. General and administrative expenses were $60 million, marginally higher than the year-ago level of $59 million.
Operating income was up 1.7% to $643 million.
Interest expenses in the quarter were $310 million, up from $283 million in the year-ago quarter.
Financial Condition
AES Corp reported cash and cash equivalents of $949 million as of Dec 31, 2017 compared with $1,244 million as of Dec 31, 2016. Non-recourse debt totaled $13,176 million as of Dec 31, 2017 down from $13,731 million as of Dec 31, 2016.
In 2017, cash from operating activities was $2,489 million compared with the year-ago figure of $2,884 million.
Total capital expenditure in 2017 was $2,356 million, lower than $2,458 million a year ago.
Consolidated free cash flow was $1,921 million at 2017-end, down from $2,244 million at the end of 2016.
Guidance
For 2018, AES Corp provided its adjusted earnings per share guidance in the range of $1.15-$1.25.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two 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, AES has a nice Growth Score of B, however its Momentum is doing a bit better with an A. The stock was also 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.
Based on our scores, the stock is more suitable for value and momentum investors than growth investors.
Outlook
AES has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.