Valued at a market cap of $7 billion, The AES Corporation (AES) is a power generation and utility company that provides affordable, sustainable energy through its diverse portfolio of thermal and renewable generation facilities as well as distribution businesses. It is scheduled to announce its fiscal Q1 earnings for 2025 after the market closes on Thursday, May 1.
Ahead of this event, analysts expect this utility company to report a profit of $0.47 per share, down 6% from $0.50 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s earnings estimates in each of the last four quarters. In Q4 2024, AES’ EPS of $0.54 outpaced the forecasted figure by a notable margin of 58.8%.
For fiscal 2025, analysts expect AES to report a profit of $2.14 per share, in-line with fiscal 2024. Furthermore, its EPS is expected to grow 5.6% year over year to $2.26 in fiscal 2026.
Shares of AES have declined 40.2% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 3.8% gain, and the Utilities Select Sector SPDR Fund’s (XLU) 16.1% rise over the same time frame.
On Feb. 27, AES released its Q4 results. Shares of the company soared 11.7% on the following day, despite delivering a mixed performance. On the downside, its revenue declined slightly year-over-year to $3 billion, missing consensus estimates by 9.2%, largely due to weaker performance in its non-regulated segment. Nonetheless, its adjusted EPS of $0.54 exceeded the forecasted figure by a strong margin of 58.8% despite a 26% year-over-year decrease. Adding to the uptick, its adjusted EBITDA rose 2.1% to $643 million, and income from continuing operations came in at $249 million, marking a strong recovery from the $650 million loss reported in the same quarter last year. These encouraging signs likely contributed to the sharp increase in the stock price.
For fiscal 2025, AES expects adjusted EPS to range between $2.10 and $2.26. The company also reaffirmed its annualized growth target of 7% to 9% through 2025, further bolstering investor confidence.
Wall Street analysts are moderately optimistic about AES’ stock, with a "Moderate Buy" rating overall. Among 11 analysts covering the stock, seven recommend "Strong Buy," three suggest “Hold,” and one advises a “Strong Sell” rating. The mean price target for AES is $14.64, which indicates an ambitious 49.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
