Market Overview

AES's Earnings: A Preview

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On Friday, November 06, AES (NYSE: AES) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect AES's EPS to be near $0.43 on sales of $2.70 billion. In the same quarter last year, AES reported EPS of $0.48 on revenue of $2.62 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 10.42% decline in the company's EPS figure. Revenue would be have grown 2.86% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.24 0.29 0.33 0.41
EPS Actual 0.25 0.29 0.35 0.48
Revenue Estimate 2.58 B 2.66 B 2.86 B 2.96 B
Revenue Actual 2.22 B 2.34 B 2.43 B 2.62 B

Stock Performance

Shares of AES were trading at $19.94 as of November 04. Over the last 52-week period, shares are up 17.15%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. AES is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings