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AES Corp (AES) Q2 Earnings Miss Estimates, Revenues Down Y/Y

AES Corporation 's AES second-quarter 2018 adjusted earnings per share of 25 cents missed the Zacks Consensus Estimate of 28 cents by 10.7%. However, the bottom line remained flat with the year-ago period's figure.

Barring one-time adjustments, the company delivered GAAP earnings of 15 cents in the reported quarter compared with 8 cents in the prior-year.

Highlights of the Release

AES Corp generated total revenues of $2,537 million in the second quarter, down 2.9% year over year. The top line also lagged the Zacks Consensus Estimate of $3,406 million by 25.5%.

Total cost of sales was $1,937 million in the second quarter, down 2.7% year over year. General and administrative expenses were $35 million, 28.6% lower than the year-ago quarter's level of $49 million.

Operating income fell 3.7% year over year to $600 million.

Interest expenses in the quarter under review were $263 million, lower than $276 million in the year-earlier period.

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation Price, Consensus and EPS Surprise | The AES Corporation Quote

Financial Condition

AES Corp reported cash and cash equivalents of $1,140 million as of Jun 30, 2018 compared with $949 million as of Dec 31, 2017.

Non-recourse debt totaled $14,230 million as of Jun 30, 2018, up from $13,176 million as of Dec 31, 2017.

In the second quarter, cash from operating activities was $399 million compared with the year-ago quarter's $254 million.

Total capital expenditure in the second quarter was $499 million, which came in below $649 million recorded a year ago.

Guidance

For 2018, AES Corp reaffirmed its adjusted earnings per share outlook in the range of $1.15-$1.25.

Zacks Rank

AES Corp has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Recent Utility Releases

Xcel Energy XEL recorded second-quarter 2018 operating earnings of 52 cents per share, beating the Zacks Consensus Estimate of 47 cents by 10.6%. Also, the bottom line was 15.6% higher than the year-ago quarter's tally.

DTE Energy DTE reported second-quarter 2018 operating earnings per share of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power AEP reported second-quarter 2018 adjusted earnings per share of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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