AES Tops by a Penny, but Slashes Outlook - Analyst Blog
AES Corporation’s (AES) adjusted EPS of 26 cents per share in the first quarter of fiscal 2010 was a penny above the Zacks Consensus Estimate of 25 cents. The improvement was driven by improved operating performance at its generation business in the Philippines, higher volumes at its utilities in Brazil and favorable foreign currency exchange rates. However, adjusted EPS for the quarter was way below the year-ago EPS of 37 cents.
Estimate Revisions Trend
AES Corporation has witnessed a consistent positive streak in earnings surprises over the past four quarters. The average is a positive at 62.05%, reflecting the utility’s stable performance during this period.
Of the five analysts covering the stock in fiscal 2010, one has lowered his earnings estimate in the last 30 days. The company lowered its fiscal 2010 earnings guidance to between 90 and 95 cents per share range, below the Zacks Consensus Estimate of $1.03. AES maintained all of its 2010 cash flow and gross margin guidance elements.
Quarterly Operational Results
In the reported quarter, consolidated revenue increased $843 million to $4.1 billion. Of that amount, $427 million stemmed from a favorable foreign currency translation impact, particularly the Brazilian Real, which appreciated 22%. In addition, higher revenues resulted from an increase in tariff rates at its Latin American utilities, increased Latin American volumes, contributions from the company’s Cartagena business in Spain and improved operational performance in the Philippines.
Consolidated gross profit increased by $144 million to $1.0 billion, which reflected favorable foreign currency exchange rates and improved operating performance in the Philippines, higher volumes at its Brazilian utilities, favorable non-cash impact of $44 million and mark-to-market derivative adjustments on natural gas hedges in New York.
Financial Condition
AES Corporation reported cash and cash equivalents of $3.4 billion as of March 31, 2010 from $1.8 billion at fiscal-end 2009. The company reported $684 million in cash from operating activities in the quarter, an increase of 92% compared with the corresponding period last year. Consolidated free cash flow increased $328 million to reach $528 million. At quarter-end, long term liabilities increased $0.4 billion to $24.4 billion from last year.
Read the full analyst report on "AES"
Zacks Investment Research
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
