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American Electric (AEP) Q1 Earnings Miss, Revenues Fall Y/Y

·3 min read

American Electric Power Co., Inc. AEP reported first-quarter 2020 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.09 by 6.4%. The bottom declined 14.3% from $1.19 in the year-ago quarter.

The company reported GAAP earnings of $1 per share compared with the year-ago quarter’s $1.16.

The year-over-year downside can be attributed to COVID-19 pandemic related expenses.

Total Revenues

American Electric’s first-quarter revenues of $3.7 billion missed the Zacks Consensus Estimate of $4.3 billion by 14%. The reported figure declined 9.8% from the year-ago quarter’s $4.1 billion.

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. Price, Consensus and EPS Surprise

American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote

Quarterly Highlights

Total expenses in the quarter were $1,841.5 million compared with $1,844.3 million a year ago.

Operating income was $751.6 million, down 6.5% from $804.2 million in the year-ago quarter.

Segmental Performance

Vertically Integrated Utility Operations: Operating earnings in the quarter decreased to $247.2 million from $310.8 million in the year-ago quarter.

Transmission & Distribution Utilities: Operating earnings were $117 million, down from $156.6 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated operating earnings of $140.6 million, up from $124.2 million in the first quarter of 2019.

Generation and Marketing: Operating earnings were $34.7 million, down from $43.1 million in the year-ago quarter.

Corporate & Other: Operating losses were $35.3 million compared with operating loss of $49.9 million in the year-ago quarter.

Financial Update

As of Mar 31, 2020, American Electric had cash and cash equivalents of $1,554.6 million compared with $246.8 million as of Dec 31, 2019.

Long-term debt was $25.78 billion as of Mar 31, 2020, compared with $25.13 billion as of Dec 31, 2019.

Cash flow from operations was $615.7million during first-quarter 2020 compared with $808.3 million in first-quarter 2019.

2020 Guidance

American Electric reaffirmed 2020 operating earnings guidance in the range of $4.25-$4.45 per share. The Zacks Consensus Estimate for 2020 earnings, pegged at $4.28, lies below the mid-point of the guidance.

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

Public Service Enterprise Group Inc. PEG reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.

FirstEnergy Corporation FE delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy NEE reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

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