Before the bell,
) reported fourth quarter and fiscal 2011 results. In the reported
quarter, the company with adjusted EPS of 23 cents beat the Zacks
Consensus Estimate of 20 cents. However, adjusted EPS for the
reported quarter fell short of the year-ago EPS of 25 cents.
On a GAAP basis, the company reported EPS of 12 cents compared
with 16 cents in the year-ago quarter. The 11-cent variance in
adjusted and GAAP EPS came from impairment losses of 8 cents and
currency transaction losses of 3 cents.
Fiscal 2011 adjusted earnings came in at $1.04 per share, more
than the Zacks Consensus Estimate of $1.01. This also came above
fiscal 2010 earnings of 98 cents per share.
In fiscal 2011, on a GAAP basis, the company reported EPS of 59
cents compared with 63 cents in fiscal 2010. The variance of 45
cents per share in fiscal 2011 between reported and adjusted
earnings came from impairment losses of 36 cents, currency
transaction losses of 4 cents, debt retirement losses of 4 cents,
and derivative mark-to-market loss of a penny.
In the reported quarter, consolidated revenue of $4,269 million
beat the Zacks Consensus Estimate of $4,118 million and year-ago
quarterly revenue of $4,230 million. The rise in revenues year over
year was due to contributions from new businesses; higher volume at
its businesses in Brazil due to higher market demand; increased
generation in Asia; and higher rates in El Salvador and Ukraine.
These gains were partially offset by unfavorable foreign currency
translation; lower prices at Eletropaulo in Brazil; lower volumes
in Chile and Spain; and the unfavorable impact of non-cash,
unrealized mark-to-market derivative loss at Sonel in Cameroon.
Consolidated gross profit increased by $65 million to $1,095
million, benefiting from increased volume at its generation
businesses in Latin America; higher spot pricing and receipt of
insurance proceeds in Panama; contributions from new businesses;
and lower fixed costs at Eletropaulo. These gains were partially
offset by unfavorable foreign currency translation; lower prices at
Eletropaulo in Brazil; and the non-cash, unrealized mark-to-market
derivative loss at Sonel.
Fiscal 2011 revenue was $17,274 million versus the Zacks
Consensus Estimate of $16,795 million. Full year revenue also came
above the $15,828 million generated in fiscal 2010.
AES Corporation reported cash and cash equivalents of $1,710
million at the end of fiscal 2011 from $2,525 million at the end of
fiscal 2010. The company generated $2,884 million in cash from
operating activities in fiscal 2011 compared with $3,465 million of
cash generated in fiscal 2010. Consolidated free cash flow
decreased to $1,924 million compared with $2,667 million at the end
of the year-ago period. Long-term liabilities increased to $27,080
million from $21,973 million at fiscal-end 2010.
Looking ahead, AES Corporation trimmed its 2012 adjusted
earnings guidance to a range of $1.22-$1.30 per share, from the
prior forecast between $1.27-$1.37 per share.
In the near term, we see shares of the company underperforming
versus the broader market and thus reiterate short-term Zacks #4
Rank (Sell rating) on the stock. In the near term, we would advise
investors to accumulate its short-term Zacks #1 Rank (Strong Buy
Huaneng Power International Inc.
AES CORP (
): Free Stock Analysis Report
HUANENG POWER (
): Free Stock Analysis Report
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