AES Slides Most in a Year as 2017 Outlook Misses EstimatesBy
AES Corp. slid the most in more than a year after the U.S. utility holding company said earnings this year may lag analysts’ estimates.
Adjusted earnings per share for 2017 will be in the range of $1 to $1.10, Arlington, Virginia-based AES said Monday in a statement. That compares to an average forecast of $1.108 based on 13 analyst estimates compiled by Bloomberg.
“It was a disappointing report, below my expectations,” Charles Fishman, an analyst for Chicago-based Morningstar Inc., said by phone. “It was well below my estimate and consensus for 2017.”
AES was the worst performer in the S&P 500 Utilities Index after saying planned asset sales of at least $500 million this year will crimp earnings by 3 or 4 cents a share. The company has been scaling back some of its operations in Brazil and expanding its renewable energy holdings as installations surge worldwide.
The shares tumbled as much as 6 percent, the most on an intraday basis since January 2016, and were down 4.2 percent at $11.42 at 12:01 p.m. in New York.
“We said our 2018 guidance would be toward the low end of our prior 12 to 16 percent rate,” Amy Ackerman, a company spokeswoman, said by phone.