AES Corporation (AES) is heading into its next report on rising estimates and good valuations.

Company Description

AES provides energy to 29 countries with energy through generation and distribution. The company has diversified portfolio of thermal and renewable fuel sources.

EPS Rises

On Aug 7 the company announced quarterly earnings per share of 28 cents, 3 cents higher than last year and 8 cents higher than the Zacks Consensus Estimate.

All types of cash flow increased dramatically, including a $181 million jump in Consolidated Cash Flow, to $495 million.

Raising Guidance

During the same release the company raised full-year EPS guidance to between $1.05 and $1.10. The bottom and top end of the range rose 8 cents and 3 cents, respectively.

Solid Growth

Analyst estimates are coming in near the middle of the AES’s forecasts, which would yield earnings growth of 9% this year. The Zacks Consensus Estimate is now $1.23, up 8 cents over the past quarter and projects a 13% growth next year.


Shares are trading near 14 times forward earnings, a good value. Also, the PEG ratio is just under 1.0, meanings the growth rates are reasonably priced.

New Operations

AES announced the start of operations in 3 new plants in Chile, China, and Jordan. The total output for these locations is projected at 582 MW.

The Chart

Shares of AES made the most out of this year’s rally that began in March. Recently they have encountered some resistance, but could have plenty of momentum going forward.

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