Why Is AES (AES) Down 0.6% Since Last Earnings Report?

It has been about a month since the last earnings report for AES (AES). Shares have lost about 0.6% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AES due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for The AES Corporation before we dive into how investors and analysts have reacted as of late.AES’ Q4 Earnings Outpace Estimates, Revenues Increase Y/Y The AES Corporation’s fourth-quarter 2025 adjusted earnings of 81 cents per share surpassed the Zacks Consensus Estimate of 62 cents by 30.6%. The bottom line also improved 50% from 54 cents in the year-ago quarter.AES reported 2025 adjusted earnings of $2.34 per share, which were higher than the year-ago figure of $2.14.AES’ Total RevenuesThe company’s total revenues amounted to $3.1 billion, up 4.7% year over year. However, the figure missed the Zacks Consensus Estimate of $3.45 billion by 10.1%.AES reported revenues of $12.23 billion in 2025, which were lower than $12.28 billion in 2024.Highlights of AES’ ReleaseThe total cost of sales in 2025 was $10.02 billion, up 2.6% year over year.The operating margin totaled $2.21 billion, down 4.5% from $2.31 billion in the year-ago period.Interest expenses amounted to $1.41 billion, down 5.3% from $1.49 billion in the prior year.On March 2, 2026, AES, Global Infrastructure Partners (part of BlackRock) and the EQT Infrastructure VI fund, together with co-underwriters California Public Employees' Retirement System and Qatar Investment Authority, announced a definitive agreement under which the Consortium will acquire AES for $15.00 per share in cash. The deal values AES at $10.7 billion in equity and about $33.4 billion in enterprise value, and is expected to close in late 2026 or early 2027.AES’ Financial ConditionAES had cash and cash equivalents of $1.38 billion as of Dec. 31, 2025 compared with $1.52 billion as of Dec. 31, 2024.Non-recourse debt totaled $21.68 billion as of the same date, up from $20.63 billion as of Dec. 31, 2024.The net cash flow from operating activities amounted to $4.31 billion during 2025 compared with $2.75 billion at the end of 2024.Total capital expenditure was $5.93 billion during 2025, down from 7.39 billion recorded a year ago.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.The consensus estimate has shifted 66.67% due to these changes.VGM ScoresCurrently, AES has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade 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.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, AES has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAES is part of the Zacks Utility - Electric Power industry. Over the past month, Consolidated Edison (ED), a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended December 2025 more than a month ago.Con Ed reported revenues of $4 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.89 for the same period compares with $0.98 a year ago.For the current quarter, Con Ed is expected to post earnings of $2.39 per share, indicating a change of +6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.Con Ed has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The AES Corporation (AES): Free Stock Analysis Report Consolidated Edison Inc (ED): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks