AES (AES) Q3 Earnings Miss Estimates

Core Insights - AES reported quarterly earnings of $0.75 per share, missing the Zacks Consensus Estimate of $0.78 per share, but showing an increase from $0.71 per share a year ago, resulting in an earnings surprise of -3.85% [1] - The company posted revenues of $3.35 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.85% and showing a year-over-year increase from $3.29 billion [2] - AES shares have increased by approximately 5.8% since the beginning of the year, underperforming compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $3.59 billion, and for the current fiscal year, it is $2.17 on revenues of $12.79 billion [7] - The estimate revisions trend for AES was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Utility - Electric Power industry, to which AES belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]