AES Lowers FY20 Adj. EPS Outlook Amid COVID-19 - Quick Facts

(RTTNews) - While reporting financial results for the first quarter on Thursday, power company AES Corp. (AES) lowered its adjusted earnings guidance for the full-year 2020, due to the COVID-19-related economic slowdown.

For fiscal 2020, the company now projects adjusted earnings in a range of $1.32 to $1.42 per share, down from the prior forecast range of $1.40 to $1.48 per share.

This reduction in adjusted earnings is primarily driven by lower demand across its businesses, particularly at its US utilities, which have been negatively impacted by the COVID-19-related economic slowdown that began late in the first quarter of 2020.

The company expects this demand trend to continue through the second quarter, with some improvement in the third quarter and further recovery by year-end 2020.

However, the company a reaffirming the 7 to 9 percent average annual growth target for adjusted earnings through 2022, off a base of 2018 actuals.

Further, the company said it remain committed to growing dividend by 4 to 6 percent annually, subject to Board approval.