Earnings Preview For AES
AES (NYSE:AES) is set to give its latest quarterly earnings report on Thursday, 2025-07-31. Here's what investors need to know before the announcement.
Analysts estimate that AES will report an earnings per share (EPS) of $0.43.
AES bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
Last quarter the company missed EPS by $0.19, which was followed by a 2.31% increase in the share price the next day.
Here's a look at AES's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.46 | 0.35 | 0.64 | 0.37 |
| EPS Actual | 0.27 | 0.54 | 0.71 | 0.38 |
| Price Change % | 2.0% | 12.0% | -10.0% | -4.0% |
Market Performance of AES's Stock
Shares of AES were trading at $13.43 as of July 29. Over the last 52-week period, shares are down 26.61%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analysts' Perspectives on AES
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on AES.
AES has received a total of 4 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $13.5, the consensus suggests a potential 0.52% upside.
Comparing Ratings with Competitors
In this comparison, we explore the analyst ratings and average 1-year price targets of Hallador Energy and Vistra, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Hallador Energy, with an average 1-year price target of $23.0, suggesting a potential 71.26% upside.
- Analysts currently favor an Buy trajectory for Vistra, with an average 1-year price target of $187.5, suggesting a potential 1296.13% upside.
Insights: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Hallador Energy and Vistra, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| AES | Outperform | -5.15% | $441M | 1.29% |
| Hallador Energy | Outperform | 5.57% | $67.35M | 9.09% |
| Vistra | Buy | 28.78% | $793M | -11.65% |
Key Takeaway:
AES ranks at the bottom for Revenue Growth with a negative rate, while its peers show positive growth. In terms of Gross Profit, AES is in the middle position. However, its Return on Equity is the lowest among the group. Overall, AES lags behind its peers in terms of financial performance metrics.
Get to Know AES Better
AES is a global power company that operates in 15 countries. Its generation portfolio as of year-end 2024 totals over 32 gigawatts, including renewable energy (50%), gas (32%), coal (16%), and oil (2%). AES has majority ownership and operates six electric utilities distributing power to more than 2.5 million customers.
Breaking Down AES's Financial Performance
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining AES's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -5.15% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.
Net Margin: AES's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.57%, the company may face hurdles in effective cost management.
Return on Equity (ROE): AES's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.29% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): AES's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.1%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 8.82, AES faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for AES visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
