AES Corp (NYSE: AES) reported Q3 EPS of $0.42, $0.01 worse than the analyst estimate of $0.43. Revenue for the quarter came in at $2.55 billion versus the consensus estimate of $2.7 billion.

Q3 2020 Financial Highlights

• Diluted EPS of ($0.50), compared to $0.32 in Q3 2019, primarily reflecting expenses associated with dispositions and impairments
• Adjusted EPS1 of $0.42, compared to $0.48 in Q3 2019

Financial Position and Outlook

• Reaffirming 2020 Adjusted EPS1 guidance range of $1.32 to $1.42 and now expecting to be at the top end of this range
• Reaffirming 7% to 9% average annual growth target through 2022
• Remain committed to growing dividend by 4% to 6% annually, subject to Board approval

"I am pleased to announce that we have already achieved two of our top three priorities for 2020 by attaining a second investment grade rating and reducing our coal generation to 29%. With our year-to-date performance, we are on track to accomplish our third priority of delivering our guidance," said Andrés Gluski, AES President and Chief Executive Officer. "By leveraging our Green Blend and Extend strategy and our development pipeline, we added 556 MW of renewables, bringing our year-to-date total to 2.1 GW and our backlog to 6.8 GW. At the same time, Fluence continues to maintain its global leadership position in the energy storage market, with 2.4 GW delivered or awarded and its recent acquisition of AMS, the leading provider of AI-enabled bidding software for utility-scale storage and generation assets."

"We are very excited by the recent upgrade to investment grade from S&P, which again highlights the material transformation of our portfolio and balance sheet over the last several years," said Gustavo Pimenta, AES Executive Vice President and Chief Financial Officer. "Furthermore, the 35% sell-down of the Southland repowering demonstrates the significant intrinsic value of our assets. This year, we have announced asset sale proceeds of $650 million, above our $550 million target. We will recycle this capital by investing in renewables and innovative solutions to further transform our portfolio and deliver superior returns to our shareholders."

GUIDANCE:

AES Corp sees FY2020 EPS of $1.32-$1.42, versus the consensus of $1.37.

• The Company is reaffirming its 2020 Adjusted EPS1 guidance of $1.32 to $1.42 and expects to be in the top end of this range. The Company is also reaffirming its 7% to 9% average annual growth rate target through 2022, from a base year of 2018.

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