AES Corporation Reports Decrease in Revenue for FY2023 Q2 with USD 3027.0 Million
August 14, 2023
🌥️Earnings Overview
AES ($NYSE:AES) Corporation reported their financial results for the second quarter of fiscal year 2023 on August 3 2023, with total revenue of USD 3027.0 million, a 1.7% decrease compared to the same period in the prior fiscal year. Net income was USD -39.0 million; a notable improvement from the -179.0 million reported in Q2 of FY 2022.
Stock Price
This marks a decrease of 1.9% from the closing price of $21.0 in the previous quarter. AES Corporation stock opened at $20.8, and closed at $20.6 on Thursday. The decrease in revenue is due to a combination of pandemic-induced economic uncertainty and an unfavorable energy market. This has put a strain on AES Corporation’s ability to generate revenue, resulting in several areas of its operation being affected. AES Corporation is working to improve the efficiency of its operations and reduce costs to mitigate these effects.
Additionally, they are focusing on increasing the diversification of their sources of income to generate more reliable revenue streams. Despite these efforts, the company has yet to see any major improvements in their financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aes Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 12.95k | -370 | 3.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aes Corporation. More…
| Operations | Investing | Financing |
| 3.04k | -7k | 4.36k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aes Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 41.51k | 36.75k | 3.72 |
Key Ratios Snapshot
Some of the financial key ratios for Aes Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.5% | 3.4% | 9.4% |
| FCF Margin | ROE | ROA |
| -25.1% | 31.3% | 1.8% |
Analysis
GoodWhale has conducted a financial analysis of AES CORPORATION and determined it to be a medium risk investment in terms of financial and business aspects. To help potential investors make an informed decision, GoodWhale has detected two risk warnings in the income sheet and the cashflow statement. These warnings may indicate a lack of financial stability in the company, making it more risky for investors. To get a better understanding of these warnings, we suggest registering with GoodWhale and viewing the analysis performed on AES CORPORATION. Our comprehensive analysis will enable you to make an educated investment decision. More…
Peers
The company’s main competitors are Iberdrola SA, Portland General Electric Co, and ALLETE Inc.
– Iberdrola SA ($LTS:0HIT)
Iberdrola SA is a Spanish electric utility company. It is the largest producer of wind power in the world and a major player in the Spanish electricity market. Iberdrola also has a strong presence in the United Kingdom, Mexico, and the United States. The company has a market capitalization of 58.35 billion as of 2022 and a return on equity of 11.07%. Iberdrola is a vertically integrated utility, meaning it is involved in all aspects of the electricity business, from generation to distribution to retail sales. The company has a diversified generation portfolio that includes nuclear, hydro, renewable, and thermal power plants. Iberdrola is also one of the largest distributors of electricity in Spain and the United Kingdom.
– Portland General Electric Co ($NYSE:POR)
The company’s market cap is 3.82B as of 2022. The company’s ROE is 9.64%. The company is a diversified electric utility with operations in Oregon, Washington and Idaho. The company’s primary business is the generation, transmission and distribution of electricity. The company also owns and operates a coal-fired power plant and a natural gas-fired power plant.
– ALLETE Inc ($NYSE:ALE)
Pall Corporation is a global leader in providing filtration, separation and purification solutions to meet the critical fluid management needs of customers across the broad spectrum of life sciences and industry. Pall’s products are key to the success of customers in the medical, biopharmaceutical, semiconductor, water purification, aerospace, and energy markets. The company’s products are used every day by people around the world, in a wide range of applications and industries. Pall Corporation has a market cap of 2.89B as of 2022 and a Return on Equity of 4.57%.
Summary
AES Corporation reported their second quarter earnings for FY2023 on August 3 with total revenue of USD 3027.0 million and a net income of USD -39.0 million. This represents a slight decrease in revenue year-over-year, but a significant improvement in net income. Investors should consider the company’s financial performance, potential risks, competitive landscape, and future growth prospects when making an investment decision.
They should also look at whether the company has adequate liquidity to sustain operations and take advantage of new growth opportunities. It is important to research the company’s management, customer base, product offerings, and market dynamics when assessing whether to invest in AES Corporation.
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