AES Corp (NYSE: AES) reported Q1 EPS of $0.28, $0.02 worse than the analyst estimate of $0.30. Revenue for the quarter came in at $2.65 billion versus the consensus estimate of $2.5 billion.

Q1 2019 Strategic Highlights

• On track to attain investment grade credit ratings in 2020
• Signed long-term contracts for 494 MW of renewable capacity, increasing backlog to 6.2 GW
• Signed a 12-year agreement to sell up to 18 TBTU of LNG annually in the Caribbean, beginning in 2020
• Announcing $100 million incremental annual run rate cost savings target, to be realized by 2022 from digital initiatives
• Agreed to sell the Company\'s interests in its businesses in Jordan and Northern Ireland for $211 million

Q1 2019 Financial Highlights

• Diluted EPS of $0.23, compared to $1.03 in Q1 2018, which included a gain on the sale of Masinloc in the Philippines
• Adjusted EPS of $0.28, compared to $0.28 in Q1 20181
• Reaffirming 2019 guidance and 7% to 9% average annual growth target for Adjusted EPS and Parent Free Cash Flow through 20221

"We continue to execute on our strategic plan: de-risking our portfolio; growing our LNG and renewables businesses; and becoming a technology leader," said Andrés Gluski, AES President and Chief Executive Officer. "We agreed to sell our assets in Jordan and Northern Ireland, which will reduce our footprint to 13 countries. We also signed a long-term LNG tolling agreement for up to 18 TBTU annually and grew our backlog of mostly renewable projects to 6.2 GW. Today, we are announcing a target of an additional $100 million in annual cost savings by 2022 from our digital initiatives that are currently underway."

"With our first quarter 2019 performance in line with our expectations, we are off to a solid start to deliver on our full year 2019 guidance and our 7% to 9% average annual growth target through 2022," said Gustavo Pimenta, AES Executive Vice President and Chief Financial Officer. "Our strong and growing cash flow, combined with our significant debt reduction in 2018, keep us on track to attain investment grade ratings by 2020."

GUIDANCE:

AES Corp sees FY2019 EPS of $1.28-$1.40, versus the consensus of $1.33.

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