Thu, Nov. 5, 3:58 PM
- AES Corp. (AES -8.7%) plunges nearly 9% after the electricity producer and distributor missed expectations for Q3 revenues by $1.5B and cut its 2015 earnings guidance and set its 2016 earnings guidance below estimates.
- AES lowered its full-year 2015 EPS to $1.18-$1.25 from its previous outlook of $1.25-$1.35, and sees 2016 earnings of $1.05-$1.15 as it cites unfavorable exchange rates, volatile commodities prices and weak demand in Brazil; analysts had estimated EPS of $1.27 for 2015 and $1.30 for 2016.
- AES says it is launching $150M in cost reduction and revenue enhancement initiatives that it says will offset most of its headwinds by 2018.
Thu, Nov. 5, 6:18 AM
Wed, Nov. 4, 5:30 PM
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Mon, Oct. 19, 11:59 AM
- AES Corp. (AES -1.2%) is downgraded to Hold from Buy at Argus, which also lowers its 2015 and 2016 earnings estimates.
- Argus notes that AES shareholders' equity position fell 34% during the four-year period from year-end 2010 to year-end 2014 to $4.27B from $6.47B, and long-term debt as a percentage of total capitalization was a relatively high 82% at the end of Q2, with EBITDA covering interest expense by a relatively low 2.6x.
- The firm believes the stronger U.S. dollar and continued poor (yet improving) hydroelectric conditions in AES' Brazilian operations will continue to hurt earnings growth for at least the next three to four quarters.
Fri, Oct. 16, 8:03 AM
Thu, Oct. 1, 8:33 AM
Wed, Sep. 16, 7:03 PM
- J.P. Morgan analysts warn that companies with large amounts of floating-rate debt - including Chesapeake Energy, Freeport McMoRan, Ford and GE - could be at risk if the Fed decides to raise interest rates.
- Companies with variable/floating-rate debt suffer a more immediate impact by a rate hike than companies with fixed-rate debt, the analysts say; variable-rate coupons typically reset quarterly, meaning that changes in the base rate flow through almost immediately to variable-rate borrowers, while fixed-rate borrowers do not see such an impact until they refinance or issue new debt.
- JPM lists 25 companies - not including financials - that have the “highest variable-rate debt as a percentage of market cap": FMC, NRG, FCX, AES, CVC, LVLT, PVH, CHK, FE, DVA, THC, OI, CNX, F, HCA, FOSL, RCL, JOY, GE, ADS, ALLE, HBI, GT, DNB, AN
Mon, Aug. 10, 6:09 AM
Tue, Jul. 28, 8:59 AM
- The sale of Australian renewable energy developer Pacific Hydro has drawn interest from companies including AES Corp. (NYSE:AES), TerraForm Power (NASDAQ:TERP) and Norwegian state power generator Statkraft, in a deal that could fetch more than A$2B (US$1.5B), Bloomberg reports.
- Pacific Hydro owner IFM Investors reportedly will send out detailed information next month and ask for indicative bids in September.
- The Australian government does not like wind farms, and has directed the A$10B clean energy bank to stop investing in existing plants.
- Pacific Hydro owns 19 assets in Australia, Chile and Brazil with a combined 900 MW of wind and hydro energy generation capacity, with another 1.8 GW of development projects.
Fri, Jul. 17, 8:12 AM
Mon, May 18, 3:03 PM
- Goldman's sees the S&P 500 hitting a mid-year high of 2,150 by mid-year, but fading to 2,100 by year-end after the Fed hikes rates. Its 12-month forecast of 2,125 stands against the current level of 2,130.
- With appreciation returns expected to be nil, Goldman suggests having a look at its dividend growth portfolio - a sector-neutral basket of 50 stocks. They have a median yield of 2.5% and are expected to boost payouts by 16% this year and 12% in 2016. The group's P-E ratio is 15 vs. 17.3 for the S&P 500.
- The ten highest-yielding additions: Harley-Davidson (NYSE:HOG) - with a 2.3% yield, Home Depot (NYSE:HD) - 2.1%, Dr. Pepper Snapple (NYSE:DPS) - 2.5%, National Oilwell Varco (NYSE:NOV) - 3.6%, Regions Financial (NYSE:RF) - 2.3%, Baxter International (NYSE:BAX) - 3.1%, Cummins (NYSE:CMI) - 2.4%, Seagate Technology (NASDAQ:STX) - 3.9%, International Paper (NYSE:IP) - 3.1%, AES Corp (NYSE:AES) - 3%.
- Looking over a ten-year horizon, Goldman expects dividends to account for 46% of the S&P 500's 5% annualized return, up from 20% during the current bull market which started in 2009.
- ETFs: DVY, SCHD, ADX, SDOG, DLN, DHS, FDL, DTD, FVD, DVYL, SDYL
Tue, May 12, 5:54 PM
- AES Corp. (NYSE:AES) -3.3% AH after announcing a secondary public offering of 60M common shares by a subsidiary controlled by China Investment Corp., and the concurrent repurchase of 20M shares.
- Following completion of the offering, AES expects that the selling stockholder will have fully sold its stake in the company.
Mon, May 11, 6:02 AM
Sun, May 10, 5:30 PM
Wed, May 6, 8:45 AM
- Allete (NYSE:ALE) subsidiary Allete Clean Energy agrees to acquire the AES Armenia Mountain Wind 100.5 MW wind facility near Troy, Pa., from AES Corp. (NYSE:AES) and a minority shareholder for $108M plus the assumption of existing debt.
- ALE says all the facility's energy output is sold through existing power purchase agreements that extend through 2025.
- This is the fourth wind facility ACE has acquired from AES and the seventh in its portfolio.
Fri, Apr. 24, 9:23 AM
The AES Corporation is a power generation and utility company. The Company operates in two business lines; Generation & Utilities; through its six market-oriented Strategic Business Units in United States, Andes, Brazil, MCAC, EMEA and Asia.
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