AES Corporation’s (NYSE:AES) fourth-quarter 2018 adjusted earnings of 36 cents per share surpassed the Zacks Consensus Estimate of 33 cents by 9.1%. However, the bottom line declined 16.3% from the year-ago period’s figure.
Barring one-time adjustments, the company delivered GAAP earnings of 15 cents per share in the reported quarter against a loss of $1.03 incurred in the prior-year period.
For 2018, AES Corp’s adjusted earnings came in at $1.24 per share, which outpaced the Zacks Consensus Estimate of $1.21 by 2.5%. The reported figure also improved 14.8% from $1.08 per share in the prior year.
Highlights of the Release
AES Corp generated total revenues of $2.62 billion in the fourth quarter, declined 0.8% year over year. The top line also lagged the Zacks Consensus Estimate of $2.71 million by 3.3%.
The company’s total revenues were $10.74 billion in 2018, which missed the Zacks Consensus Estimate of $10.97 billion by 2.1%. The reported figure, however, rose 2% from $10.53 billion registered in the prior year.
Total cost of sales was $1,976 million in the fourth quarter, down 1.1% year over year. General and administrative expenses were $58 million, 3.3% lower than the year-ago quarter’s level of $60 million.
Operating income remained almost flat at $646 million.
Interest expenses summed $257 million, down from $310 million in the year-earlier period.
Financial Condition
AES Corp reported cash and cash equivalents of $1,166 million as of Dec 31, 2018, compared with $949 million as of Dec 31, 2017.
Non-recourse debt totaled $13,986 million as of Dec 31, 2018, up from $13,176 million as of Dec 31, 2017.
In 2018, cash from operating activities was $2.34 billion compared with the year-ago figure of$2.50 billion.
Total capital expenditures in 2018 amounted to $2.12 billion, which came in below $2.18 billion incurred a year ago.
Guidance
For 2019, AES Corp expects its adjusted earnings in the range of $1.28-$1.40 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $1.31 per share, below the mid-point of the company’s guided range.
Zacks Rank
AES Corp has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
Entergy Corporation (NYSE:ETR) reported fourth-quarter 2018 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 25%.
Ameren Corporation’s (NYSE:AEE) fourth-quarter 2018 earnings of 28 cents per share from continuing operations missed the Zacks Consensus Estimate of 32 cents by 12.5%.
American Electric Power Co. (NYSE:AEP) reported fourth-quarter 2018 operating earnings of 72 cents per share, in line with the Zacks Consensus Estimate.
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