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S&P 500 (NYSE:SPY) component AES (NYSE:AES) will unveil its latest earnings on Monday, August 6, 2012. AES is a global generator and distributor of electrical power. Its two primary types of businesses are generation and utilities. The former owns and operates power plants from which the company generates power to sell to wholesale customers; the latter owns and operates facilities to transmit and sell electricity to residential and commercial customers. .
AES Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 26 cents per share, a decline of 7.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 33 cents. Between one and three months ago, the average estimate moved down. It has risen from 22 cents during the last month. For the year, analysts are projecting profit of $1.26 per share, a rise of 26% from last year.
Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of 40 cents per share versus a mean estimate of 28 cents. Two quarters ago, it reported profit of 20 cents per share.
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A Look Back: In the first quarter, profit rose 52.2% to $341 million (44 cents a share) from $224 million (28 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11.2% to $4.74 billion from $4.26 billion.
Stock Price Performance: Between July 2, 2012 and July 31, 2012, the stock price dropped 66 cents (-5.2%), from $12.72 to $12.06. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 1, 2012, when shares rose for seven straight days, increasing 4.4% (+53 cents) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 3.4% (-42 cents) over that span.
Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.
Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the third quarter of the last fiscal year and the fourth quarter of the last fiscal year, but finished in the black with income of $341 million in the first.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.2 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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