Plus   Neg

AES Lowers FY20 Adj. EPS Outlook Amid COVID-19 - Quick Facts

While reporting financial results for the first quarter on Thursday, power company AES Corp. (AES) lowered its adjusted earnings guidance for the full-year 2020, due to the COVID-19-related economic slowdown.

For fiscal 2020, the company now projects adjusted earnings in a range of $1.32 to $1.42 per share, down from the prior forecast range of $1.40 to $1.48 per share.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.41 per share for the year. Analysts' estimates typically exclude special items.

This reduction in adjusted earnings is primarily driven by lower demand across its businesses, particularly at its US utilities, which have been negatively impacted by the COVID-19-related economic slowdown that began late in the first quarter of 2020.

The company expects this demand trend to continue through the second quarter, with some improvement in the third quarter and further recovery by year-end 2020.

However, the company a reaffirming the 7 to 9 percent average annual growth target for adjusted earnings through 2022, off a base of 2018 actuals.

Further, the company said it remain committed to growing dividend by 4 to 6 percent annually, subject to Board approval.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said that the current state of the COVID-19 pandemic in the U.S. is "really not good." The U.S. is the country worst-affected by the coronavirus and has recently seen a surge in coronavirus infections as lockdown restrictions are eased. Granules Pharmaceuticals, Inc. recalled twelve (12) lots of type 2 diabetes medication Metformin hydrochloride Extended-Release, in the form of oral film-coated tablets, for the potential presence of nitrosamine impurity, N-Nitrosodimethylamine (NDMA), above levels of the Acceptable Daily Intake Limit (ADI), the U.S. Food and Drug Administration or FDA said in a statement. Palantir Technologies Inc., the Silicon Valley big data analytics company that has handled U.S. government's certain sensitive projects, said it has confidentially filed documents with the Securities and Exchange Commission to go public. In a statement, the company said the proposed public listing of its Class A common stock is expected to take place after the SEC completes its review process.
Follow RTT