AES Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component AES (NYSE:AES) will unveil its latest earnings on Wednesday, November 7, 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 profit of 35 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 32 cents. Between one and three months ago, the average estimate moved up. It has risen from 34 cents during the last month. For the year, analysts are projecting net income of $1.22 per share, a rise of 22% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 12 cents, coming in at profit of 14 cents per share against a mean estimate of net income of 26 cents. The company topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 19.5% to $140 million (18 cents a share) from $174 million (22 cents a share) the year earlier, missing analyst expectations. Revenue fell 7.7% to $4.19 billion from $4.54 billion.

Stock Price Performance: Between August 8, 2012 and November 1, 2012, the stock price fell $1.18 (-10.1%), from $11.72 to $10.54. 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.18 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.

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.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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