AES Corp (NYSE: AES) shares are soaring 5.06% in Friday's trading session, showcasing a remarkable turnaround from the initial 1.5% premarket decline following the release of its second-quarter results. The company's mixed financial performance appears to have been overshadowed by positive factors that have reignited investor optimism.

AES reported adjusted earnings of $0.51 per share for Q2, surpassing analyst expectations of $0.47 and marking a significant 34.21% increase from the $0.38 per share reported in the same period last year. However, the company's quarterly sales of $2.85 billion fell short of the projected $3.10 billion, representing a 2.96% year-over-year decrease. Despite this revenue miss, investors seem to be focusing on the earnings beat and the company's maintained 2025 guidance.

The maintained 2025 adjusted earnings guidance of $2.10 to $2.26 per share appears to be a key driver behind the stock's surge. This outlook suggests management's confidence in the company's long-term prospects, despite the challenges reflected in the Q2 results. Additionally, the reported increase in adjusted EBITDA to $1.057 billion, up by $208 million from the previous period, indicates underlying operational improvements that may be contributing to the positive market sentiment. The stock's dramatic reversal from its premarket slump underscores the market's evolving interpretation of AES's financial health and future potential.