The AES Corporation
) reported first quarter 2014 adjusted earnings per share of 24
cents, lagging the Zacks Consensus Estimate by 14.3%. Operating
earnings for the reported quarter were down from the year-ago
figure of 27 cents by 11.1%.
The year-over-year decline was primarily due to forced outages and
a lack of gas availability during an extremely harsh January. In
addition, the continuation of poor hydrology in Panama and Brazil
negatively impacted first-quarter performance.
Including one-time charges of 31 cents in the reported quarter,
GAAP loss was 7 cents per share as against earnings of 15 cents per
share in first quarter 2013.
Highlights of the Release
AES Corporation generated total revenues of $4.26 billion in the
first quarter, up 2.7% year over year. The top line also surpassed
the Zacks Consensus Estimate of $4.22 billion by 1.0%.
In the reported quarter, total cost of sales was $3.46 billion, up
2.0% year over year. General and administrative expenses were $51.0
million, down 5.6% year over year.
Interest expenses in the reported quarter were $373 million, up $
33 million year over year.
AES Corp. reported cash and cash equivalents of $1.41 billion as of
Mar 31, 2014 versus $1.64 billion as of Dec 31, 2013. Non-recourse
debt was $13.7 billion as of Mar 31, 2014 versus $13.3 billion as
of Dec 31, 2013.
Cash from operating activities in first quarter 2014 was $0.2
billion versus $0.6 billion in first quarter 2013.Capital
expenditures in the quarter were $399 million versus $401 million a
AES Corp. reiterated its adjusted earnings guidance for 2014 in the
range of $1.30 to $1.38 per share. The company however expects 2014
earnings to be on the lower end of the guidance range primarily due
to the continuation of dry hydrological conditions in Latin
Cash flow from operating activities for 2014 is projected between
$2.2 billion and $2.8 billion. Free cash flow is estimated in the
range of $1.00 billion to $1.3 billion in 2014.
Other Company Releases
American Electric Power Company Inc.
) reported first quarter 2014 operating earnings of $1.15 per
share, beating the Zacks Consensus Estimate of 91 cents by 26.4%.
) first quarter 2014 operational earnings came in at $2.29 per
share in the quarter, beating the Zacks Consensus Estimate by 8.5%.
CMS Energy Corporation
) posted first-quarter 2014 earnings per share of 75 cents, beating
the Zacks Consensus Estimate of 64 cents by 17.2%.
AES Corporation missed our estimates due to extreme weather
conditions impacting its normal operations. In addition, poor
hydrological conditions are expected to persist in Panama and
Brazil. This is going to have a negative impact on earnings in the
range of 7-10 cents per share in 2014.
In Brazil, AES Corporation was able to secure 60 days of gas supply
for its 640 MW gas fired power plant. We look upon it as a positive
development. This gas storage will ensure consistent production and
enable the company to cater to the increasing demand for power in
Brazil during the FIFA World Cup due in a month's time.
AES Corp. currently holds a Zacks Rank #3 (Hold).
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