AES Corp (AES) To Post Q2 Earnings: What's In The Cards?
Zacks Investment Research | Aug 01, 2019 09:31PM ET
The AES Corporation (NYSE:AES) is set to release second-quarter 2019 results on Aug 6, before the opening bell.
In the last reported quarter, the company witnessed a negative earnings surprise of 6.67%. However, it surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average positive surprise being 3.10%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
During the first-quarter earnings call, AES Corp announced the launch of its additional $100-million annual cost-savings program. This initiative will further strengthen the company’s objective to effectively manage costs, which will likely be reflected by the upcoming quarterly results.
Additionally, the company has been witnessing lower interest expenses over the last few quarters. We expect the trend to continue in the to-be-reported quarter, which in turn may favorably impact the company’s bottom line.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at 27 cents, indicating a rise of 8% from the year-ago quarter’s reported figure.
During the second quarter of 2019, majority of AES Corp’s service territories in the United States witnessed severe weather conditions, characterized by severe storms and tornadoes. As a result, this may have led to prolonged electricity outages, thereby disrupting the smooth supply of power. This, in turn, is also likely to unfavorably impact the company's overall revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s second-quarter sales is pegged at $2.5 billion, implying a year-over-year decline of 1.1%.
What the Zacks Model Unveils
Our proven model does not conclusively show that AES Corp is likely to beat estimates in the second quarter. This is because a stock needs to have both — a positive Zacks Investment Research
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