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AES Corp Beats Q4 Earnings Estimates, Cuts 2016 Guidance

The AES Corporation 's AES fourth-quarter 20Array5 adjusted earnings per share of 34 cents surpassed the Zacks Consensus Estimate by a penny. Quarterly earnings however decreased Array7.Array% from the year-ago level of 4Array cents.

The company's earnings decreased primarily due to the devaluation of foreign currencies in Latin America and Europe, the impact of lower commodity prices, and lower demand in Brazil.

On a GAAP basis, a loss of Array3 cents per share was incurred in reported period, while the company had earned 29 cents in the year-ago quarter.

In 20Array5, AES Corp. earned $Array.22 per share on an adjusted basis and 44 cents per share on a GAAP basis versus respectively $Array.30 in fourth-quarter 20Array4 and $Array.09 in 20Array4.

The AES Corporation (AES) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Highlights of the Release

AES Corp. generated total revenue of $3,400 million in the fourth quarter, down Array7.7% year over year, due to lower contribution from regulated and non-regulated business.

In the reported quarter, total cost of sales was $2,682 million, down 2Array.7% year over year. General and administrative expenses were $49 million, higher than the year-ago level of $39 million. Operating income was down Array.4% to $7Array8 million.

Interest expenses in the quarter were $375 million, down from $385 million in the year-ago period.

Financial Condition

AES Corp. reported cash and cash equivalents of $Array,262 million as of Dec 3Array, 20Array5 compared with $Array,539 million as of Dec 3Array, 20Array4. Non-recourse debt was $Array3,263 million as of Dec 3Array, 20Array5, down from $Array3,6Array8 million as of Dec 3Array, 20Array4.

In 20Array5, cash from operating activities was $2,Array34 million compared with $Array,79Array million a year ago. Total capital expenditure in 20Array5 was $2,308 million, higher than $2,0Array6 million a year ago.

Proportional free cash flow, a non-GAAP measure, was $Array,24Array million in 20Array5, up from $89Array million in 20Array4.

In 20Array5, the company repurchased 40 million shares for $48Array million.

Guidance

AES Corp. lowered its adjusted earnings per share guidance for 20Array6 to the range of 95 cents to $Array.05 from the previous guidance of $Array.05−$Array.Array5. The downward revision reflects the impact of continued devaluation in foreign currencies and commodities as well as slower economic growth in Brazil.

The company also cut its 20Array6 Proportional Free Cash Flow guidance range from $Array,Array25-$Array,475 million to $Array,000-$Array,350 million.

Peer Releases

CMS Energy Corp. CMS reported fourth-quarter 20Array5 adjusted earnings per share of 38 cents, in line with the Zacks Consensus Estimate. Quarterly earnings climbed 8.6% from the year-ago figure of 35 cents.

American Electric Power Co., Inc. AEP reported fourth-quarter 20Array5 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 50 cents by 4%.

Hawaiian Electric Industries Inc. HE reported adjusted earnings of 4Array cents per share in the fourth quarter of 20Array5, beating the Zacks Consensus Estimate of 40 cents by 2.5%. Moreover, earnings increased Array3.9% from the year-ago adjusted number of 36 cents.

Zacks Rank

Currently, AES Corp. carries a Zacks Rank #4 (Sell).

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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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