Why AES Stock Soared 16.5% in August

Shares of AES (NYSE: AES) jumped 16.5% in August, according to data provided by S&P Global Market Intelligence.

With those gains, the utility stock hugely outperformed the Dow Jones Utility Average index, thanks to better-than-expected earnings numbers and reaffirmation of its 2020 and medium-term guidance despite pandemic disruption. AES' plans to lower power generation from coal are also on track, as its second quarter revealed.

AES beat earnings estimates when it reported its second-quarter numbers on Aug. 6, turning in adjusted earnings per share of $0.25 compared to $0.26 in Q2 2019. The company incurred a loss on a GAAP basis, though, because of one-time charges such as an impairment and a loss on sale of assets.

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Source Fool.com