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AES Corp (AES) Misses on Q3 Earnings, Reaffirms '17 Outlook

The AES Corporation’s AES third-quarter 2017 adjusted earnings per share of 24 cents missed the Zacks Consensus Estimate of 29 cents by 17.2%. Moreover, the bottom line declined 25% from the year-ago period’s figure of 32 cents, hurt by higher quarterly tax rate and the recent hurricanes in the Caribbean.

Barring one-time adjustments, the company’s third-quarter reported earnings were 23 cents compared with the year-ago figure of 26 cents.

Highlights of the Release

AES Corp. generated total revenues of $3,632 million in the third quarter, up 2.5% year over year. The top line surpassed the Zacks Consensus Estimate of $3,542 million by 2.5%.

Total cost of sales was $2,921 million, up 2.3% year over year. General and administrative expenses were $52 million, higher than the year-ago level of $40 million.

Operating income was up 3.3% to $711 million.

Interest expenses in the quarter were $353 million, slightly down from $354 million in the year-ago quarter.

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote

Financial Condition

AES Corp. reported cash and cash equivalents of $1,398 million as of Sep 30 compared with $1,305 million as of Dec 31, 2016. Non-recourse debt totaled $14,822 million as of Sep 30, up from $14,489 million as of Dec 31, 2016.

In the third quarter, cash from operating activities was $735 million compared with the year-ago figure of $819 million.

Total capital expenditure in the period was $503 million, lower than $536 million a year ago.

Consolidated free cash flow was $601 million in the third quarter, down from $665 million in the year-ago quarter.

Guidance

AES Corp. reaffirmed its adjusted earnings per share guidance for 2017 in the range of $1.00-$1.10.

The company still expects 2017 consolidated free cash flow guidance in the band of $1,400-$2,000 million.

Zacks Rank

AES Corp. has a Zacks Rank #4 (Sell).

Recent Peer Releases

Entergy Corporation ETR reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number also improved 1.7% from the year-ago figure. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DTE Energy Company DTE reported third-quarter 2017 operating earnings per share (EPS) of $1.48 missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96. The company holds a Zacks Rank #2 (Buy).

American Electric Power Co., Inc. AEP reported third-quarter 2017 operating EPS of $1.10 missed the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 reported a year ago. The company carries a Zacks Rank #3.

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American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
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DTE Energy Company (DTE): Free Stock Analysis Report
 
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