The AES Corporation
) reported first quarter 2013 adjusted earnings per share of 26
cents, below the Zacks Consensus Estimate of 28 cents. Adjusted
earnings for the reported quarter also decreased 29.7% from the
year-ago figure of 37 cents.
On a GAAP basis, the company reported earnings of 14 cents
compared with 44 cents in the year-ago quarter. The 12-cent
variance between adjusted and GAAP earnings came from a 1 cent
and 4 cents charge related to unrealized derivative and debt
retirement losses, respectively. It also included a 5 cents loss
from impairments and a 2 cents loss from foreign currency
The company realized lower numbers across all its business units
barring the U.S.
In the reported quarter, revenues were $4,265.0 million, failing
to match our projection of $5,197.0 million by 17.9% and also
declined almost 7.0% from the year-ago quarterly revenues of
Lower revenue recognition across all its segments, except MCAC
(Mexico, Central America and the Caribbean), led to the lower
In the reported quarter, total cost of sales was $3,510.0 million
compared with $3,514.0 million in the first quarter 2012. This
marginal decrease was mainly due to a 7.9% cut in regulated sales
General and administrative expenses declined to $61.0 million
from $87.0 million in the year-ago quarter level.
Operating income stood at $299.0 million, down 61% from $769.0
million in the same period last year. Although the company
managed to control its costs, a lower top line led to a fall in
profit in the reported quarter.
Interest expense was $377.0 million versus $416.0 million in the
first quarter 2012.
AES Corporation reported cash and cash equivalents of $2,301.0
million as of Mar 31, 2013 versus $1,966.0 million as of Dec 31,
The company generated $618.0 million in cash from operating
activities at the end of the first quarter compared with $534.0
million in the year-ago period.
Long-term liabilities as of Mar 31, 2013 decreased to $25.6
billion from $25.9 billion as of Dec 31, 2012.
AES Corporation reaffirmed its adjusted earnings guidance for
2013 in the range of $1.24 to $1.32 per share. The company
maintained its 2012-2015 total return target in the band of 6% to
8%. 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 million.
Other Utility Company Releases
CMS Energy Corporation
) announced first-quarter 2013 earnings per share of 53 cents on
both adjusted and GAAP basis, beating the Zacks Consensus
Estimate of 46 cents. Earnings were also 43.2% higher than 37
cents earned in the year-ago quarter. A colder-than-normal
weather spiked natural gas deliveries, driving
better-than-expected results in the reported quarter.
American Electric Power Company Inc.
) first quarter 2013 adjusted earnings of 80 cents per share came
in line with the Zacks Consensus Estimate as well as the year-ago
profit. The company witnessed solid residential and commercial
sales during the quarter, stemming from positive regulated rate
recovery. However, this was partly offset by weak industrial
) reported first quarter 2013 earnings of 83 cents per share
compared with 66 cents per share in the year-ago quarter.
ALLETE's earnings beat the Zacks Consensus Estimate by 10.6%.
Earnings received a boost from increased electric sales due to a
cold winter, start-up of renewable services and higher returns
from investments in American Transmission Company.
AES Corporation currently retains a Zacks Rank #3 (Hold).
American Electric and ALLETE carry a Zacks Rank #2 (Buy), while
CMS Energy carries a Zacks Rank #1 (Strong Buy) and are worth
AMER ELEC PWR (AEP): Free Stock Analysis
AES CORP (AES): Free Stock Analysis Report
ALLETE INC (ALE): Free Stock Analysis Report
CMS ENERGY (CMS): Free Stock Analysis Report
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