AES Missed Revenue 3Q15 Estimate, Stock Fell 8.7%

AES Missed 3Q15 Revenue Estimate, but Analysts Remain Positive

AES’s 3Q15 earnings

AES Corporation (AES) reported its 3Q15 earnings on November 5, 2015. It posted revenue of $3.7 billion, lower than analysts’ expectation of $5.4 billion. It was also 16.2% lower than 3Q14 revenue of $4.4 billion.

AES reported adjusted EPS (earnings per share) of $0.39 in 3Q15, higher than Wall Street analysts’ expectation of $0.36 per share. Adjusted EPS was also higher by 5.4% compared to 3Q14 adjusted EPS of $0.37 per share.

Market reaction to AES’s 3Q15 earnings

AES’s 3Q15 earnings disappointed the markets with lower-than-expected revenues. But the company reported EPS better than analysts’ expectation. AES stock fell 8.7% on November 5, 2015, compared to the previous day’s closing price. This was mainly due to a miss on revenue estimate and lower revenue guidance provided by AES management.

The Utilities Select Sector SPDR ETF (XLU) fell 0.86% on the same day. It’s a key ETF in the utility sector. AES comprises 1.2% of XLU. NextEra Energy (NEE), Dominion Resources (D), Duke Energy (DUK), and Southern Company (SO), the top competitors in the utilities sector, fell 1.1%, 0.47%, 0.67%, and 0.37%, respectively, on the same day.

On a year-to-date basis through November 5, 2015, AES fell 27.9% against a 7.7% fall for XLU.

Continue to Next Part

Browse this series on Market Realist:

• Part 2 - AES Underperformed Expectations for 3Q15 Revenues

• Part 3 - AES Performed Better in 3Q15 in Terms of Earnings

• Part 4 - AES Has Paid Consistent Dividends for 3 Years