Shares of AES (NYSE: AES) tumbled 15.8% in February, according to data provided by S&P Global market Intelligence. A quarterly report that missed consensus estimates was largely to blame, and investors were quick to press the panic button after AES' stock's solid run-up since September 2019. The broader market sell-off has only added fuel to the fire: The utility stock has lost another 17% in March already.
AES reported a 7.3% decline in year-over-year revenue and a loss of $120 million for the fourth quarter versus a profit of $181 million in the year-ago period. For the full year, the company earned only $0.45 per share compared to $1.48 in 2018. Asset impairment charges on some coal-fired plants were largely to blame for the steep loss. The highlight of the earnings report, in fact, was AES' renewed focus on renewable energy and reducing its dependence on coal.
Its adjusted earnings of $1.36 per share were almost 10% higher from 2019. Management expects to earn $1.40-$1.48 a share in 2020, in line with its target average annual growth rate of 7%-9% through 2022.