The AES Corp. Earnings: Swing to a Loss After Two Straight Profit Quarters

Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

S&P 500 (NYSE:SPY) component The AES Corporation (NYSE:AES) reported its results for the third quarter. 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.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

The AES Corporation Earnings Cheat Sheet

Results: Loss widened to $1.57 billion ($2.10 per diluted share) from $131 million (loss of 17 cents per share) in the same quarter a year earlier.

Revenue: Rose 4.7% to $4.59 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The AES Corporation reported adjusted net income of 36 cents per share. By that measure, the company beat the mean estimate of 35 cents per share. Analysts were expecting revenue of $4.5 billion.

Quoting Management: “We continue to take important steps to better align the organization with our strategic goals. We recently announced a reorganization of the Company that will streamline how we work and decrease our company-wide overhead. As a result, we have increased our overhead cost savings target by $45 million to $145 million annually by 2014 from our starting point in 2011,” said Andrs Gluski, AES President and Chief Executive Officer.

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 14 cents versus a mean estimate of net income of 26 cents per share.

The company’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $140 million in the second quarter and a profit of $341 million in the first quarter.

After dropping in the quarter before, revenue increased last quarter. Revenue fell 7.7% to $4.19 billion in the second quarter from the year earlier.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 33 cents per share from 29 cents. For the fiscal year, the average estimate has been unchanged at $1.22 a share.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Is AT&T’s Stock a Buy as iPhone Sales Soar?

Is the U.K. a Tech Company Tax Haven?

Should Apple’s CEO Be President of the United States?

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business