American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
Earnings also improved 39.6% year over year, supported by continued strategic investments in its regulated segments.
For 2016, American Electric Power’s earnings were $3.94 per share, up from $3.69 a year ago.
American Electric Power’s fourth-quarter revenues of $3,782.6 million increased 2.4% from $3,692.7 million in the year-ago quarter. The reported figure also exceeded the Zacks Consensus Estimate of $2,831 million.
In 2016, total revenues decreased 3.1% year over year to $16,370.2 million.
Operating expenses incurred in the reported quarter were $1,851.7 million compared with $1,922.8 million a year ago.
Operating income in fourth-quarter 2016 was $571.3 million, up 15.6% from $494.1 million a year ago.
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
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $150.6 million from $116.8 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $77.2 million in the quarter, up from $63.9 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $58.8 million, up from $44.6 million recorded in the fourth quarter of 2015.
Generation and Marketing: Operating earnings were $47.8 million, up from $7.8 million in the fourth quarter of 2015.
As of Dec 31, 2016, American Electric Power had $210.5 million in cash and cash equivalents compared with $176.4 million as of Dec 31, 2015.
Long-term debt was $17.38 billion as of Dec 31, 2016, compared with $17.74 billion as of Dec 31, 2015.
Cash flow from operations was $4.5 billion for 2016 compared with $4.7 billion in the prior year.
American Electric Power has provided its 2017 operating earnings guidance in the range of $3.55–$3.75.
American Electric Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
DTE Energy Co. DTE is expected to report fourth-quarter 2016 results on Feb 8. The Zacks Consensus Estimate for earnings is pegged at 84 cents.
Entergy Corp. ETR is slated to report fourth-quarter 2016 results on Feb 15 and the Zacks Consensus Estimate for its bottom line stands at 18 cents.
CMS Energy Corp. CMS is scheduled to report fourth-quarter 2016 results on Feb 2. The Zacks Consensus Estimate for earnings stands at 28 cents.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
CMS Energy Corporation (CMS): Free Stock Analysis Report
Entergy Corporation (ETR): Free Stock Analysis Report
DTE Energy Company (DTE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research