AES Corp. cut to Hold at Argus on disappointing Q1 EPS, strained balance sheet

As previously reported, Argus analyst John Eade downgraded AES Corp. (AES) to Hold from Buy with no price target Over the long term, the company stands to benefit from the global transition to more sustainable, environmentally friendly power generation, though its near-term results are more of a problem as AES has recently reported Q1 adjusted EPS that was down 46% y/y and fell short of consensus earnings estimates, as revenue declined and margins tightened, the analyst tells investors in a research note. Argus adds that AES management’s forecasts call for mid-single-digit profit growth at best for the year, and while the stock currently pays a rich dividend yield of more than 7.0%, the company’s balance sheet is “strained”.