The AES Corporation (AES), headquartered in Arlington, Virginia, is a global energy company focused on generating and distributing electricity from traditional and renewable sources. With a market cap of $12.42 billion, AES operates across multiple countries, providing power to millions of customers worldwide. The company is set to release its Q3 earnings after the market closes on Oct. 31.
Ahead of the event, analysts expect AES to report a profit of $0.60 per share, matching the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters.
Its adjusted earnings of $0.38 per share for the last quarter surpassed the consensus estimate by 5.6%. AES beat Q2 earnings estimates due to higher utility contributions and new renewable projects.
For fiscal 2024, analysts expect AES to report EPS of $1.90, up 8% from $1.76 in fiscal 2023.
AES stock is down 9.3% on a YTD basis, significantly underperforming the broader S&P 500 Index's ($SPX) 23% gains and the Utilities Select Sector SPDR Fund’s (XLU) 29.4% gain over the same time frame.
AES reported its Q2 earnings on Aug. 1, and its stock declined 4.4% the following day. The power company’s revenue dipped 2.8% annually to $2.94 billion due to lower non-regulated revenues, missing Wall Street’s projections.
The consensus opinion on AES stock is bullish, with an overall “Strong Buy” rating. Of 12 analysts covering the stock, eight advise a “Strong Buy” rating, one has a “Moderate Buy,” and three suggest a “Hold.”
AES’ average analyst price target is $22.80, suggesting a potential upside of 30.5% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
