The AES Corporation (AES) is slated to report first-quarter 2024 results on May 2, after the closing bell.It delivered an earnings surprise of 5.80% in the last reported quarter. However, the company has a trailing four-quarter average negative earnings surprise of 2.36%.Factors to NoteIn the first quarter, AES’ service territories witnessed mixed weather patterns. While some parts of its service areas experienced warmer-than-normal temperatures, other parts observed mostly normal temperatures during this y ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider AES (AES) . This company, which is in the Zacks Utility - Electric Power industry, shows potential for another earnings beat.This power company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.44%.For the last reporte ...

The world economy is transitioning to a renewable energy narrative. This makes the demand for sustainable solutions and further emphasizes the potential of hydrogen as an alternative fuel source. While the market may be experiencing issues in scalability and cost, it’s still eclipsed by the industry’s massive potential. Consequently, investors buying hydrogen value stock picks may soon experience a growth spurt of the decade.To come up with the list of companies for this article, I’ve reviewed the forward p ...

ClaudineVM/iStock via Getty ImagesDear readers/followers, In this article, I'll give you my first article on the AES Corporation (NYSE:AES). The company is a US-based utility with a potentially fairly decent upside. Like many of the utilities around the globe at this time, the company is fairly heavily weighted towards becoming a champion renewable player. The company is headquartered in Arlington, and the abbreviation AES stands for Applied Energy Services - which also was the company's name until the ...

ARLINGTON, Va., April 3, 2024 /PRNewswire/ -- The AES Corporation (NYSE: AES) will host a conference call on Friday, May 3, 2024 at 10:00 a.m. Eastern Time (ET) to review its first quarter 2024 financial results. The call will include prepared remarks and a question and answer session.  It will be open to the media and the public in a listen-only mode by telephone and webcast.  Interested parties may listen to the teleconference by dialing 1-833-470-1428 at least ten minutes before the start of the call.  I ...

2 Stocks Quietly Capitalizing on the Massive AI Boom Canva: pinglabel from Getty Images. Robert Daemmrich Photography Inc / Getty Images, and gageskidmore / Flickr Since ChatGPT’s public launch in November 2022, artificial intelligence, or AI, has been the dominant storyline in the technology world and the stock market. And whether you’ve dabbled with the technology or not, there’s no denying that many of the world’s most forward-thinking minds are firmly planting themselves as huge AI believers.Mark Cuba ...

The AES Corporation Fourth Quarter & Full Year 2023 Financial Review CONTAINS FORWARD-LOOKING STATEMENTS Safe Harbor Disclosure ...

Financial Data and Key Metrics - Adjusted EBITDA for 2023 was $2.8 billion, at the top end of the guidance range, with adjusted EBITDA including tax attributes reaching $3.4 billion [5] - Adjusted EPS for 2023 was $1.76, exceeding the guidance range of $1.65 to $1.75 [5] - Parent-free cash flow for 2023 was just over $1 billion, surpassing the guidance range of $950 million to $1 billion [5] - Asset sales proceeds for 2023 were $1.1 billion, significantly above the target range of $400 million to $600 million [5] - The company expects adjusted EBITDA to grow at an annual rate of 5% to 7% and adjusted EPS to grow at 7% to 9% through 2027 [6] Business Line Performance - The Renewable Strategic Business Unit (SBU) saw higher adjusted EBITDA, driven by 3.5 gigawatts of new projects coming online in 2023 and higher margins in Colombia [16] - The Utilities SBU experienced higher adjusted PTC due to the recovery of prior year's purchase power costs at AES Ohio and rate-based growth in the U.S. [16] - The Energy Infrastructure SBU saw lower adjusted EBITDA due to significant LNG transaction margins in 2022, lower margins in Chile, and the sale of a minority interest in Southland combined cycle assets [17] - The New Energy Technologies SBU reported higher adjusted EBITDA, with Fluence achieving positive adjusted EBITDA in their fiscal fourth quarter of 2023 [18] Market Performance - The company signed 5.6 gigawatts of new Power Purchase Agreements (PPAs) in 2023, the highest in its 43-year history, with a backlog of 12.3 gigawatts of projects [6][7] - Nearly 60% of the 3.5 gigawatts of projects brought online in 2023 were for corporate customers, particularly large technology companies [7] - The company is well-positioned to meet the growing energy demand from data centers, which is expected to more than double by 2030 [9] Strategic Direction and Industry Competition - The company is focusing on serving corporate customers, particularly in the data center sector, which is driving demand for renewable energy [7][9] - AES has a strong track record of delivering projects on time and on budget, which is a key differentiator in the industry [10] - The company has increased its U.S. return ranges by 200 basis points to 12% to 15% on a levered after-tax cash basis due to higher returns from renewable projects [9] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to market conditions and execute growth commitments, with a positive outlook for 2024 and beyond [27] - The company is well-positioned to meet the strong demand for renewables, particularly from data centers, and expects to achieve higher long-term growth targets [28] Other Important Information - The company has a multi-year strategic arrangement with top suppliers, including Fluence, which has helped achieve the best on-time project completion rate in the industry [11] - AES Ohio and AES Indiana are undergoing significant investment programs to improve service quality, decarbonization, and customer experience [12][13] Q&A Session Summary Question: Impact of Asset Sales on EBITDA Growth [30] - The flat EBITDA growth for 2024 is primarily due to the timing of asset sales, with a $200 million drag from the lag in redeploying capital [31] Question: Flexibility in Capital Allocation and Leverage Targets [32] - The company has flexibility in achieving its asset sale targets and is focused on maintaining investment-grade credit metrics [33][34] Question: Drivers of Higher Returns in Renewables [36] - Higher returns are driven by better-than-expected performance on prior PPAs, positioning in select markets with high demand, and increased efficiency in construction and development [37][38] Question: Contribution of Different Business Segments to Higher Growth Rates [41] - Both the utilities and renewables segments are contributing to higher growth rates, with utilities experiencing fast growth and renewables seeing improved returns [42] Question: Shift in Business Mix Due to Raised Growth Expectations [44] - The business mix is shifting slightly towards renewables, with a higher share of returns coming from this segment, while energy infrastructure is shrinking less than previously expected [45] Question: Capacity Additions and Returns Improvement [46] - The company is focusing on maximizing shareholder value rather than growth for growth's sake, with higher returns driven by cash generation rather than tax credits [48][51] Question: Timing of New Project Completions [53] - The flat level of gigawatts entering commercial operation in 2024 is due to project timing and the development of transfer projects, with no signal of underlying issues [54] Question: Credit Metrics and Leverage [56] - The company ended 2023 with a strong FFO to debt ratio of approximately 22%, with expectations to maintain or improve this ratio in 2024 [57] Question: Performance of Existing Assets [60] - The company has not seen any degradation in the performance of existing assets, with older projects performing better than forecasted [61] Question: Impact of Delayed Coal Plant Retirements [62] - Delayed coal plant retirements are providing some upside to EBITDA and smoothing out the reduction in EBITDA from coal exits [63][64] Question: Competition from Nuclear Power in Data Center Market [65] - The company does not see nuclear power as a significant threat to its renewable energy projects in the near term, given the strong demand for renewables and the challenges in building new nuclear plants [66][67] Question: Returns on Data Center Projects [68] - The company does not disclose specific returns for data center projects but notes that corporate customers are a key segment driving higher average returns [69] Question: Dividend Growth Policy [70] - The company has decided to grow dividends at a lower rate of 2% to 3% starting in 2025, reflecting the balance between attractive dividend yields and strong earnings growth [71][72] Question: Tax Credit Guidance for 2024 [75] - The $1 billion tax credit guidance for 2024 is driven by the success of the business, including the doubling of construction in 2023 and the earlier recognition of credits through transfers [76][77]

The AES Corporation’s (AES) fourth-quarter 2023 adjusted earnings of 73 cents per share beat the Zacks Consensus Estimate of 69 cents by 5.8%. The bottom line also improved 49% from 49 cents reported in the year-ago quarter.The company generated a GAAP loss of 15 cents per share compared with a loss of $1.35 in the fourth quarter of 2022.For 2023, AES reported adjusted earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.73 by 1.7%. The bottom line also improved 5.4% from $1.67 reported i ...

AES (AES) reported $2.97 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 3%. EPS of $0.73 for the same period compares to $0.49 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.1 billion, representing a surprise of -4.29%. The company delivered an EPS surprise of +5.80%, with the consensus EPS estimate being $0.69.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they comp ...