Stryker shares tumble despite strong Q2 results and raised guidance
Arlington-based AES Corporation (NYSE:AES), currently trading at $11.78 and showing a significant 8.87% return over the past week, announced on Monday that it will restate its financial results for the second and third quarters of 2024 due to an overstatement of impairment expenses related to the sale of its stake in AES Brasil Energia S.A. According to InvestingPro analysis, AES currently operates with a significant debt burden, with a debt-to-equity ratio of 8.21. The revision follows the company’s discovery that it had used incomplete data in estimating the fair value of AES Brasil’s net assets during the period when it was classified as held for sale.
The overstatement amounted to approximately $192 million for the quarter ended June 30, 2024, and about $5 million for the quarter ended September 30, 2024. AES Corp emphasized that the restatements do not affect its previously reported revenues of $12.28 billion, operating margin, net income, cash flows, or Adjusted EBITDA of $3.29 billion for the affected periods. The company maintains a P/E ratio of 4.87, which InvestingPro analysis suggests indicates a relatively low earnings multiple compared to peers.
The company has included the restated unaudited condensed consolidated financial statements in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on March 10, 2025. AES Corp has also acknowledged a material weakness in its internal control over financial reporting and outlined a remediation plan in its 2024 Form 10-K.
The management and Audit Committee’s decision to restate the financials was made on March 6, 2025, and the company has since engaged in discussions with its independent registered public accounting firm, Ernst & Young LLP, regarding the restatement.
AES Corp advises investors and other interested parties to refer to the restated financial information in the 2024 Form 10-K and future SEC filings for the most accurate financial data. The company has no plans to amend its previously filed Quarterly Reports on Form 10-Q for the restated periods.
This news is based on a press release statement and investors should consult AES Corp’s SEC filings for further details on the restatement and the company’s financial position. With a current ratio of 0.8 and significant short-term obligations, investors seeking deeper insights into AES’s financial health can access comprehensive analysis through InvestingPro, which offers exclusive access to 12 additional ProTips and detailed financial metrics, including Fair Value estimates and expert analysis available in the Pro Research Report.
In other recent news, AES Corporation’s financial performance and strategic plans have attracted significant attention from analysts. The company reported its fourth-quarter 2024 earnings with an earnings per share (EPS) of $0.54, surpassing the forecast of $0.4386, although revenue fell short at $2.96 billion against an expected $3.11 billion. Mizuho (NYSE:MFG) Securities adjusted its price target for AES from $16 to $15, maintaining an Outperform rating, following AES’s 2024 earnings release and strategic decisions to halt dividend growth and reduce renewable energy capital expenditures by $1.3 billion. Meanwhile, BofA Securities upgraded AES’s stock rating from Underperform to Neutral, raising the price target to $13, citing the company’s strategic adjustments and focus on capital management.
Conversely, Seaport Global Securities downgraded AES from Neutral to Sell, setting a price target of $7 due to concerns about the company’s ability to meet its 2027 EBITDA targets. Seaport highlighted AES’s history of missing targets in its Renewables segment and noted operational challenges in its renewable power purchase agreements. Despite these mixed analyst perspectives, AES has announced plans to achieve a 5-7% EBITDA compound annual growth rate through 2027, supported by strategic cost reductions and a focus on high-return investments. The company has also set a 2025 guidance for adjusted EPS between $2.10 and $2.26, emphasizing growth in its renewables segment. These developments reflect AES’s ongoing efforts to enhance its financial position and execution visibility.
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