The AES Corporation (NYSE:AES) announced its Q3 2023 earnings per share (EPS) of $0.6, falling short of the anticipated $0.74, which has sparked investor unease. The announcement was made during a financial review call where CEO Andres Gluski, CFO Stephen Coughlin, and Vice President of Investor Relations Susan Harcourt addressed the company's performance and strategic initiatives.
The trio discussed the company's exposure to interest rates and funding sources, as well as provided an update on the company's financial metrics. Despite the earnings miss, Gluski projected a full-year adjusted EPS within the upper half of their guidance range ($1.65 to $1.75), thereby reaffirming all short- and long-term financial targets.
The adjusted EBITDA for Q3 was reported at $1 billion, with an adjusted earnings per share of $0.60. This follows concerns raised during the previous quarter's call in August.
To ensure transparency for stakeholders about the company's performance, comprehensive financial information and reconciliations between GAAP and non-GAAP measures have been made available on aes.com.
InvestingPro Insights
InvestingPro's real-time data provides further context to AES Corporation's recent financial performance. The company's market cap stands at $11.24B, with a negative P/E ratio of -20.00. However, the adjusted P/E ratio for the last twelve months as of Q3 2023 is 17.86, indicating a more favorable valuation. The company's revenue for the same period is $12.76B, representing a growth of 3.51%.
Analysts at InvestingPro have highlighted a few areas to watch. Firstly, AES operates with a significant debt burden, which could be a concern for potential investors. Secondly, despite a declining trend in earnings per share, the strong earnings are expected to allow the management to continue dividend payments. In fact, AES has raised its dividend for 12 consecutive years.
These insights and more are part of the comprehensive analysis offered by InvestingPro, which currently provides over a dozen additional tips for AES Corporation, helping investors make informed decisions.
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