Core Viewpoint - The market anticipates a year-over-year decline in AES's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - AES is expected to report quarterly earnings of 3.26 billion, indicating a 9.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.44% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for AES is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.94% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - AES currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, AES exceeded earnings expectations by delivering 0.60, resulting in a surprise of +18.33% [12]. - Over the past four quarters, AES has consistently beaten consensus EPS estimates [13]. Conclusion - While AES may not be a strong candidate for an earnings beat, investors should consider other influencing factors before making investment decisions [16].
Analysts Estimate AES (AES) to Report a Decline in Earnings: What to Look Out for