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American Electric (AEP) Q1 Earnings Beat, Sales Decline Y/Y

Zacks Equity Research

American Electric Power Co., Inc. AEP reported first-quarter 2019 adjusted earnings per share (EPS) of $1.19, surpassing the Zacks Consensus Estimate of $1.10 by 8.2%.

However, the bottom line rose 24% from 96 cents per share in the year-ago quarter.

The company reported GAAP earnings of $1.16 per share compared with the year-ago quarter’s 92 cents.

Total Revenues

American Electric’s first-quarter revenues of $4.06 billion missed the Zacks Consensus Estimate of $4.31 billion by 5.76%. The reported figure also declined 0.3% from the year-ago quarter’s revenues of $4.07 billion.

Quarterly Highlights

Operating expenses in the reported quarter were $1,844.3 million compared with $1,850.2 million a year ago.

Operating income in the quarter was $804.2 million, up 10.2% from $729.8 million in the year-ago quarter.

Segmental Performance

Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $310.8 million from $231.2 million a year ago.

Transmission & Distribution Utilities: Operating earnings were $156.6 million in the quarter, up from $125.4 million a year ago.

AEP Transmission Holdco: This segment generated operating income of $124.2 million, up from $104 million reported in the first quarter of 2018.

Generation and Marketing: Operating earnings were $43.1 million, up from $37 million in the year-ago quarter.

Corporate & Other: Operating losses were $49.9 million compared with operating losses of $24.4 million registered in the year-ago quarter.

American Electric Power Company, Inc. Price, Consensus and EPS Surprise

American Electric Power Company, Inc. Price, Consensus and EPS Surprise | American Electric Power Company, Inc. Quote

Financial Update

As of Mar 31, 2019, American Electric had cash and cash equivalents of $227.7 million compared with $234.1 million as of Dec 31, 2018.

Long-term debt was $22.90 billion as of Mar 31, 2019, compared with $21.65 billion as of Dec 31, 2018.

Cash flow from operations was $808.3 million in the first three months of 2019 compared with $802.2 million in the prior- year period.

2019 Guidance

American Electric has reaffirmed its 2019 operating earnings guidance of $4.00-$4.20.

Zacks Rank

American Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

FirstEnergy Corporation FE delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

NextEra Energy, Inc. NEE reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

DTE Energy Company DTE reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

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