AES' Q4: Beats On Earnings, Raises Growth Targets, Eyes Continued Renewable Expansion & More
Portfolio Pulse from Lekha Gupta
AES Corp reported Q4 FY23 earnings with an adjusted EPS of $0.73, surpassing the consensus of $0.67, but missed revenue expectations with $2.97 billion against a forecast of $3.36 billion. The company saw a rise in non-regulated revenue and a decline in regulated revenue, with adjusted EBITDA also decreasing. AES exceeded its strategic objectives, including doubling renewables construction and securing significant asset sale proceeds. The company has a strong backlog and expects growth driven by renewables, U.S. utilities, and improved margins in Chile. AES raised its growth targets for adjusted EPS and EBITDA through 2027 and anticipates a dividend growth post-2024.
February 27, 2024 | 10:52 am
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AES Corp exceeded Q4 earnings expectations and has a positive outlook on growth, driven by renewables and strategic asset sales. The company raised its growth targets and expects dividend growth post-2024.
AES's better-than-expected Q4 earnings and the positive outlook on renewable energy projects, along with raised growth targets, indicate a strong future performance. The company's strategic focus on renewables and successful asset sales contribute to a positive short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100