Independent power producer AES Corp.'s second-quarter profit and revenue came in well ahead of analyst expectations, sending shares up $0.83 (4.5%) to $19.19 in after-hours trading. AES attributed its results to higher electricity prices and foreign exchange gains.Second quarter net income rose to $247 million ($0.36/share) on revenue of $3.34 billion, vs. $175 million ($0.26/share) on revenue of $2.86 billion a year ago. Analysts polled by Reuters expected EPS of $0.21 on revenue of $2.97B. AES said it continues to expand into alternative energy during the quarter, acquiring two U.S. wind farms with 186 megawatts, a 49% stake in a joint-venture that plans to construct and operate a potential 225 MW of wind energy in China, and completing the construction of a 233 MW wind farm in Texas. In its core business, AES started its first project in Jordan (a 370 MW gas-fired power plant) and acquired a 51% stake in a 390 MW pipeline in Turkey. "We had a strong quarter in terms of both our operational results and building our growth pipeline," said CEO Paul Hanrahan. AES has a stake in over 120 power generation facilities in 26 countries, with a combined net generating capacity of 35 GW of power. It sells electricity to utilities and other energy marketers through wholesale contracts or on the spot market, and directly to customers. Shares have lost 16.7% YTD.
Sources: Press release, AP, Reuters, Hoover's
Commentary: AES: A Deeper Dig In The Accounting House • Utility Consolidation: Companies to Watch
Stocks/ETFs to watch: AES. Competitors: DUK, ELE, MIR. ETFs: PUI, RYU
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.