A month has gone by since the last earnings report for AES (AES). Shares have added about 2.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is AES due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for The AES Corporation before we dive into how investors and analysts have reacted as of late.
AES’ Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
The AES Corporation’s first-quarter 2026 adjusted earnings of 67 cents per share surpassed the Zacks Consensus Estimate of 50 cents by 34%. The bottom line also improved 148.1% from 27 cents in the year-ago quarter.
AES’ Total Revenues
The company’s total revenues amounted to $3.18 billion, up 8.7% year over year. The figure also surpassed the Zacks Consensus Estimate of $3.1 billion by 2.6%.
Highlights of AES’ Release
The total cost of sales in the first quarter was $2.54 billion, up 2.2% year over year.
The operating margin totaled $640 million, up 45.1% from $441 million in the year-ago period.
Interest expenses amounted to $353 million, up 3.2% from $342 million in the prior-year quarter.
AES’ Financial Condition
AES had cash and cash equivalents of $1.6 billion as of March 31, 2026, compared with $1.38 billion as of Dec. 31, 2025.
Non-recourse debt totaled $22.55 billion as of the same date, up from $21.68 billion as of Dec. 31, 2025.
The net cash flow from operating activities amounted to $1.2 billion during the first three months of 2026 compared with $0.55 billion in the first three months of 2025.
Total capital expenditure was $1.77 billion during the first three months of 2026, up from $1.25 billion recorded a year ago.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, AES has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
AES has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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The AES Corporation (AES): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).