The AES Corporation
) is slated to release its first quarter 2014 financial results
before the market bell on May 8, 2014. The company posted a
positive earnings surprise of 3.57% in the preceding quarter. AES
Corporation currently has a Zacks Rank #3 (Hold). Let's see how
things are shaping up prior to this announcement.
AMEREN CORP (AEE): Free Stock Analysis Report
AES CORP (AES): Free Stock Analysis Report
CONSOL EDISON (ED): Free Stock Analysis
NRG YIELD INC-A (NYLD): Free Stock Analysis
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Factors to Consider
AES Corporation's earnings per share in the fourth quarter were
negatively impacted by poor hydrology in Panama considering 60%
of its generation capacity there is hydro based. The hydrological
problems are expected to continue in 2014, adversely impacting
the company's performance.
However, AES Corporation continues to expand its existing
operations and add new assets to its portfolio to reduce the risk
exposure. In 2013, the company brought on-line 522 MW of new
generation capacity, which is expected to generate earnings and
cash flow from the first quarter of 2014.
Accordingly, our proven model does not conclusively show that AES
Corporation is likely to beat earnings this quarter. That is
because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
Negative Zacks ESP:
The Most Accurate estimate stands at 26 cents while the Zacks
Consensus Estimate is pegged higher at 28 cents, resulting in a
Zacks Rank #3 (Hold):
The Zacks Rank #3 notwithstanding, the company's negative ESP
does not make us confident of a likely earnings beat. Meanwhile,
we caution against stocks with Zacks Ranks #4 and #5 (Sell-rated
stocks) going into the earnings announcement.
Other Stocks to Consider
Here are some companies in the diversified utility space having
the right combination of elements to post an earnings beat this
NRG Yield, Inc.
) has an earnings ESP of +23.53% and carries a Zacks Rank #2
) has an earnings ESP of +6.25% and carries a Zacks Rank #3
Consolidated Edison, Inc.
) has an earnings ESP of +0.94% and carries a Zacks Rank #3