ARLINGTON, Va. - The AES Corporation (NYSE:AES) today reported a fourth-quarter EPS of -$0.15, with revenue reaching $2.97 billion. Despite the quarterly loss per share, the company provided an optimistic outlook for the coming years, including a raised annualized growth target and initiating guidance for 2024.
AES Corp's guidance for the full year 2024 anticipates an EPS range of $1.87 to $1.97, aligning closely with the analyst consensus of $1.89. The company also reaffirmed its commitment to achieving an annualized growth rate of 7% to 9% through 2025, based on its 2020 figures.
Notably, AES raised its annualized growth target for the period through 2027 from 6% to 8% to 7% to 9%, using the 2023 guidance as a new base.
For 2024, AES has set an adjusted EBITDA guidance range of $2,600 to $2,900 million. Furthermore, the company has increased its annualized growth target to 5% to 7% through 2027, up from the previous 3% to 5%, based on the 2023 guidance. AES also expects its 2024 Adjusted EBITDA with Tax Attributes to be between $3,550 and $3,950 million.
AES President and Chief Executive Officer, Andrés Gluski, commented on the company's strong position, stating, "Overall, 2023 was AES' best year ever in terms of both execution and financial performance. We exceeded almost all of our strategic objectives, including increasing renewables construction by 100% to 3.5 GW and signing 5.6 GW of new PPAs." He also highlighted the company's successful asset sales, which exceeded the target for the year and positioned AES well for future growth.
Following the announcement, AES shares were down 2.81%, indicating a restrained market response to the upbeat guidance.
The company's strategic accomplishments in 2023 included signing new contracts for 5.6 GW of renewables and completing the construction of 3.5 GW of renewables, doubling the additions compared to the previous year. AES also secured $1.1 billion in asset sale proceeds, surpassing its target range of $400 to $600 million.
AES Executive Vice President and Chief Financial Officer, Stephen Coughlin, expressed satisfaction with the financial results, which met or exceeded expectations across all metrics. He also expressed confidence in the company's strategy, market position, and ability to execute its plan moving forward.
As AES continues to transition away from coal-fired generation and expand its renewables portfolio, the company's strategic direction and financial targets suggest a focus on sustainable growth and operational excellence.
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