The AES Corporation’s (NYSE:AES) fourth-quarter 2017 adjusted earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 32 cents by 34.4%. Moreover, the bottom line improved 43.3% from the year-ago period’s figure of 30 cents.
Barring one-time adjustments, the company incurred loss of $1.03 in the fourth quarter compared with the year-ago period’s loss of 35 cents.
The AES Corporation Price, Consensus and EPS Surprise
The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote
In 2017, the company posted adjusted earnings per share of $1.08, which surpassed the Zacks Consensus Estimate of $1.02. Moreover, the reported figure improved from the prior year’s figure of 94 cents.
Highlights of the Release
AES Corp generated total revenues of $2,643 million in the fourth quarter, down 0.6% year over year. The top line also missed the Zacks Consensus Estimate of $3,672 million by 28%.
In 2017, the company generated total revenues of $10.53 billion, up 2.4% from the prior year’s figure of $10.3 billion. The top line, however, missed the Zacks Consensus Estimate of $14.05 billion.
Total cost of sales was $2,000 million in the fourth quarter, down 1.4% year over year. General and administrative expenses were $60 million, marginally higher than the year-ago level of $59 million.
Operating income was up 1.7% to $643 million.
Interest expenses in the quarter were $310 million, up from $283 million in the year-ago quarter.
Financial Condition
AES Corp reported cash and cash equivalents of $949 million as of Dec 31, 2017 compared with $1,244 million as of Dec 31, 2016. Non-recourse debt totaled $13,176 million as of Dec 31, 2017 down from $13,731 million as of Dec 31, 2016.
In 2017, cash from operating activities was $2,489 million compared with the year-ago figure of $2,884 million.
Total capital expenditure in 2017 was $2,356 million, lower than $2,458 million a year ago.
Consolidated free cash flow was $1,921 million at 2017-end, down from $2,244 million at the end of 2016.
Guidance
For 2018, AES Corp provided its adjusted earnings per share guidance in the range of $1.15-$1.25.
Zacks Rank & Stock to Consider
AES Corp has a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the same space is CenterPoint Energy (NYSE:CNP) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy delivered a positive earnings surprise of 10% in the previous quarter. The company also boasts a solid long-term earnings growth rate of 6%.
Recent Peer Releases
Duke Energy (NYSE:DUK) reported fourth-quarter 2017 adjusted earnings per share of 94 cents, beating the Zacks Consensus Estimate of 91 cents by 3.3%.
PG&E Corporation’s (NYSE:PCG) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%.
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CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
The AES Corporation (AES): Free Stock Analysis Report
Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report
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