The AES Corporation
) reported fourth quarter 2012 adjusted earnings per share of 32
cents, edging out the Zacks Consensus Estimate of 30 cents.
Adjusted EPS for the reported quarter also increased 39.1% from
the year-ago earnings of 23 cents.
On a GAAP basis, the company reported earnings of 31 cents
compared with 18 cents in the year-ago quarter. The one-cent
variance in adjusted and GAAP earnings came from a 4 cent and 1
cent charge related to unrealized derivative and debt retirement
losses, respectively. It also includes a 2 cent gain from
impairments and a 2 cent gain from foreign currency transaction.
For 2012, adjusted earnings came in at $1.24 per share,
beating the Zacks Consensus Estimate of $1.22 per share. This
also came above 2011 earnings of $1.02 per share.
In 2012, on a GAAP basis, the company reported a loss of $1.21
compared with earnings of 63 cents in 2011.
The favorable earnings were driven by benefits accrued from
asset sale, lower costs and positive returns from the company's
In the reported quarter, revenue was $4,640.0 million, widely
surpassing the Zacks Consensus Estimate by 6.9% and year-ago
quarterly revenue of $4,183.0 million.
In 2012, revenue was $18.1 billion, exceeding the Zacks
Consensus Estimate of $17.6 billion. Full-year revenue also came
above the $16.9 billion generated in 2011.
The revenue upturn is attributable to higher contributions
from the company's domestic business as well as from Asia,
partially offset by a declining business in Europe and Africa,
higher taxes and declines in Chile, and tariff headwinds at
Electropaulo in Brazil.
For 2012, total cost of sales was $14.4 billion compared with
$12.9 billion in 2011. This was due to an 18.2% increase in
regulated sale costs.
General and administrative expenses in 2012 declined to $301.0
million from $391.0 million in 2011.
Operating income for 2012 stood at $314.0 million, down 86%
from $2,211.0 million in 2011. Cost rose at a faster pace than
revenue, which led to a fall in profit in 2012.
Interest expense in 2012 was $1,572.0 million versus $1,553.0
million in 2011.
AES Corporation reported cash and cash equivalents of $1,970.0
million as of Dec 31, 2012 versus $1,695.0 million as of Dec 31,
The company generated $2,901.0 million in cash from operating
activities at the end of 2012 compared with $2,884.0 million of
cash generated at year-end 2011.
Long-term liabilities as of Dec 31, 2012 decreased to $25.9
billion from $27.1 billion as of Dec 31, 2011.
AES Corporation expects pro forma earnings for 2013 in the
range $1.24 to $1.32 per share. The company expects annual
average earnings growth in the band 4% to 6%. Proportionate free
cash flow is estimated in the range of $750.0 million to $1,050.0
million in 2013. Cash flow from operating activities for 2013 is
projected to be between $2,500.0 million and $3,100.0
Other Utility Company Releases
) announced fourth-quarter 2012 earnings of 26 cents per share,
missing the Zacks Consensus Estimate of 45 cents.
Hawaiian Electric Industries Inc.
) announced fourth-quarter 2012 operating earnings of 39 cents
per share, beating the Zacks Consensus Estimate of 32 cents.
American Electric Power Company Inc.
) posted operating earnings of 50 cents per share, beating the
Zacks Consensus Estimate of 45 cents.
AES Corporation ended the year on a strong note as both
earnings and revenue outpaced our expectations. We believe the
company's several ventures like the conclusion of the 447
megawatt ("MW") of installed capacity in 2012 which includes the
big-time 326 MW gas-fired Trinidad Unit 2, 121 MW of wind as well
as various hydroelectric projects will offer encouraging growth
prospects in the near term.
Moreover, the company's effective share repurchase program and
cost control initiatives will support its broad growth
Presently, the company carries a Zacks Rank #2 (Buy). Based in
Arlington, VA, The AES Corporation, a power company, operates a
portfolio of electricity generation and distribution
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