AES (AES) got here out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.25 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 6.90%. 1 / 4 in the past, it was anticipated that this energy firm would submit earnings of $0.30 per share when it truly produced earnings of $0.28, delivering a shock of -6.67%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates two instances.
AES, which belongs to the Zacks Utility – Electrical Energy business, posted revenues of $2.7 billion for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 11.73%. This compares to year-ago revenues of $2.22 billion. The corporate has topped consensus income estimates two instances during the last 4 quarters.
The sustainability of the inventory’s quick value motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
AES shares have added about 1.8% because the starting of the yr versus the S&P 500’s acquire of 17.8%.
What’s Subsequent for AES?
Whereas AES has underperformed the market thus far this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis reveals a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a formidable observe document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for AES was unfavorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You possibly can see the whole listing of as we speak’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.40 on $2.57 billion in revenues for the approaching quarter and $1.54 on $10.12 billion in revenues for the present fiscal yr.
Buyers needs to be aware of the truth that the outlook for the business can have a fabric impression on the efficiency of the inventory as properly. By way of the Zacks Trade Rank, Utility – Electrical Energy is at present within the backside 11% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Breakout Biotech Shares with Triple-Digit Revenue Potential
The biotech sector is projected to surge past $775 billion by 2024 as scientists develop remedies for hundreds of illnesses. They’re additionally discovering methods to edit the human genome to actually erase our vulnerability to those illnesses.
Zacks has simply launched Century of Biology: 7 Biotech Shares to Purchase Proper Now to assist buyers revenue from 7 shares poised for outperformance. Our latest biotech suggestions have produced good points of +50%, +83% and +164% in as little as 2 months. The shares on this report might carry out even higher.
See these 7 breakthrough shares now>>
Click on to get this free report
The AES Company (AES): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.