The AES Corporation (AES) is scheduled to release its first-quarter 2025 results on May 1, after market close.The company delivered an earnings surprise of 58.82% in the last reported quarter. Moreover, AES holds a four-quarter average earnings surprise of 34.74%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors to Consider Ahead of AES’ Q1 ResultsAES’ service territories witnessed a b ...

Industry Overview - The demand for renewable energy is increasing globally, with wind power leading the transition towards renewables, crucial for combating climate change [1] - In the U.S., wind energy has been the largest renewable source of electricity generation since 2019, with installed capacity exceeding 153 gigawatts (GW) in 2024 [2][3] - The global wind energy market was valued at $95.55 billion in 2024, projected to grow at a CAGR of 9% from 2025 to 2032, reaching $190.39 billion [4] U.S. Wind Power Growth - Wind power output accounted for 10% of total U.S. utility-scale electricity generation in 2024, marking a 6.4% year-over-year increase [2] - The U.S. grid is expected to add 7.7 GW of wind generation capacity in 2025, up from 5.1 GW added in the previous year [3] Key Companies in Wind Energy - **AES Corporation**: A leading power generation company with a portfolio of 34,596 megawatts (MW). It plans to add 3.2 GW of new renewables by the end of 2025 and has a 51 GW pipeline for growth [7][9] - **Exelon Corporation**: Focused on clean energy transmission and distribution, expected to invest $21.7 billion in electric distribution and $12.6 billion in electric transmission from 2025 to 2028 [10] - **PG&E Corporation**: Operates California's largest regulated electric and gas utility, with a focus on wind energy procurement and development [12] - **Brookfield Renewable Partners**: Owns and operates renewable power facilities, targeting to invest $8-$9 billion over the next five years and has a strong development pipeline of 200 GW worth of projects [15][16][17] Investment Opportunities - The wind energy sector is becoming increasingly attractive for investors, with companies like Exelon, Brookfield Renewable, AES, and PG&E being essential for investment portfolios [5] - Thematic investment tools are available to identify companies that are shaping the future of renewable energy [6]

Core Insights - The decline in AES's share price was perceived as excessive considering the fundamental value of the business [1] - The share price experienced volatility, reaching a peak of $13.23 in January before dropping again [1] Company Analysis - The analyst emphasizes a strategy of seeking companies that provide both growth and value, indicating a preference for undervalued firms with strong growth potential [1] - The analyst has extensive experience in the financial sector, having worked for 15 years in various roles related to analysis and risk management [1] Investment Philosophy - The belief is that the best investments are those that are undervalued yet possess significant growth prospects [1] - The analyst's approach is independent, focusing on personal analysis rather than following market trends without critical evaluation [1]

AES Corporation (NYSE: AES ) looks broken on the surface with high debt, cheap valuation, but I believe the story is changing. The company is delivering real earnings growth, ramping up 6.6GW new capacity of clean energy, and turningI am currently working as an investment analyst at a family office. My specialty is identifying high-quality and/or severely mispriced investment ideas. I believe that a great investment idea would "jump" at you intuitively and it comes in buying great companies at great prices. ...

Core Viewpoint - The AES Corporation is focused on expanding its renewable energy generation and has also been increasing its presence in the liquefied natural gas (LNG) market, while facing challenges from declining wholesale prices [1]. Group 1: Renewable Energy Expansion - AES is enhancing its renewable generation portfolio to meet the rising electricity demand, completing 3 gigawatts (GW) of new capacity in 2024 and planning to add 3.2 GW by the end of 2025 [2]. - The company is actively retiring coal-fired units to promote clean energy, having retired 481 megawatts (MW) of coal generation in Chile and the United States in 2024 [3]. Group 2: LNG Operations - AES operates LNG import terminals in the Dominican Republic with a storage capacity of 160,000 cubic meters and has long-term contracts to supply re-gasified LNG to industrial users and third-party power plants [4]. - The completion of a new 670 MW combined-cycle gas plant in Panama is expected to enhance the utilization of AES's existing LNG regasification and storage facilities [4]. Group 3: Financial Challenges - The company faces headwinds from a significant decline in wholesale electricity costs due to increased renewable energy use and low-cost natural gas, which may negatively impact its financial performance [5]. - As of December 31, 2024, AES had a long-term debt of $25.43 billion and a current debt of $3.59 billion, with cash equivalents of $2.04 billion, indicating a potential liquidity concern [6]. Group 4: Stock Performance - AES shares have decreased by 12.9% over the past month, contrasting with a 1% decline in the industry [7].

Core Viewpoint - The AES Corporation will host a conference call on May 2, 2025, to discuss its first quarter 2025 financial results [1] Group 1: Conference Call Details - The conference call will include prepared remarks and a question and answer session, accessible to the media and public in listen-only mode [2] - Interested parties can join the call by dialing 1-833-470-1428 or +1-404-975-4839 for international callers, with a Participant Access Code of 861065 [2] - The call will be available via webcast on the AES website, with a replay accessible shortly after the call [2] Group 2: Company Overview - The AES Corporation is a Fortune 500 global energy company focused on delivering greener and smarter energy solutions [3] - The company emphasizes continuous innovation and operational excellence while partnering with customers on energy transitions [3]

Core Viewpoint - AES has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture of a company [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade for AES suggest an improvement in the company's underlying business, which could lead to higher stock prices [5][10]. Earnings Estimate Revisions for AES - For the fiscal year ending December 2025, AES is expected to earn $2.11 per share, reflecting a year-over-year change of -1.4%. However, the Zacks Consensus Estimate has increased by 4% over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade of AES to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Another notable valuation metric for AES is its P/B ratio of 1.15. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NEE has a P/B of 2.41. These are just a few of the metrics contributing to AES's Value grade of A and NEE's Value grade of D. AES stands above NEE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AES is the superior value option right now. Value invest ...

Core Points - The AES Corporation announced the expiration of its tender offer for its 3.300% Senior Notes due 2025, with $776,214,000 or 86.25% of the $900 million outstanding principal amount validly tendered [1][2] - Payment for the accepted securities will occur on March 21, 2025, following the expiration time of the tender offer [1][3] - The tender offer was subject to certain conditions, including a financing condition expected to be satisfied on March 20, 2025, through the closing of a previously announced offering of $800 million of 5.800% Senior Notes due 2032 [4] Tender Offer Details - The tender offer involved the purchase of 3.300% Senior Notes with a total principal amount of $900 million, of which $776,214,000 was accepted for purchase [2] - Holders of the securities who validly tendered their notes will receive a purchase price of $995.97 per $1,000 principal amount, plus accrued interest from the last payment date [3] Company Information - The AES Corporation is a Fortune 500 global energy company focused on delivering innovative and sustainable energy solutions [7]

ARLINGTON, Va., March 18, 2025 /PRNewswire/ -- The AES Corporation (NYSE: AES) ("AES" or the "Company") announced the pricing terms of the previously announced tender offer to purchase (the "Tender Offer") for cash, subject to certain terms and conditions, any and all of its outstanding 3.300% Senior Notes due 2025 (the "Securities").The Tender Offer is being made pursuant to the Company's Offer to Purchase, dated March 12, 2025 (the "Offer to Purchase") and the related notice of guaranteed delivery (the "N ...