American Electric's (AEP) Q4 Earnings Beat, Revenues Up Y/Y
American Electric Power Company, Inc. AEP reported fourth-quarter 2022 operating earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate of 99 cents by 6.1%. The bottom line also increased 7.1% from 98 cents in the year-ago quarter.
The company reported GAAP earnings of 75 cents per share compared with the year-ago quarter’s $1.07.
For full-year 2022, AEP reported operating earnings of $4.51 per share compared with $4.97 in the year-ago quarter. The full-year earnings, however, missed the Zacks Consensus Estimate of $5.03 per share.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote
Total Revenues
American Electric’s fourth-quarter operating revenues of $4,994.8 million beat the Zacks Consensus Estimate of $4,254.9 million by 17.4%. The reported figure also increased 22.3% from the year-ago quarter’s $4,085.2 million.
For full-year 2022, operating revenues came in at $19.54 billion, higher than $16.70 billion recorded in 2021. The full-year revenues also surpassed the Zacks Consensus Estimate of $18.97 billion.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $208.7 million from $196.1 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $112.6 million, down from $128.5 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $188.1 million, up from $166.1 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings were $81.1 million, up from $30.4 million in the year-ago quarter.
All Other: The loss for the reported quarter was $50.4 million compared with a loss of $24.9 million in the year-ago period.
Quarterly Highlights
Total expenses in the fourth quarter were $2,296.9 million, up 11.7% from the year-ago period.
Interest expenses were $394.4 million, up 29.9% from $303.7 million year over year.
Guidance
American Electric reiterated the 2023 operating earnings expectation in the range of $5.19-$5.39 per share. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.03 per share, which lies below the guidance range.
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
CMS Energy Corporation CMS reported fourth-quarter 2022 adjusted EPS of 60 cents from continuing operations, which came in line with the Zacks Consensus Estimate. The reported figure improved 27.7% on a year-over-year basis.
For the quarter under review, CMS Energy’s operating revenues were $2,278 million, which surpassed the Zacks Consensus Estimate of $2,185.3 million by 4.2%. The top line improved 12.1% on a year-over-year basis.
NextEra Energy, Inc. NEE reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter.
For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.
Duke Energy Corporation DUK reported fourth-quarter 2022 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.06 by 4.7%. The bottom line also improved 26.1% year over year.
Total operating revenues came in at $7,351 million, which increased 20.2% from $6,117 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $6,608 million by 11.2%.
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