Advertisement
Canada markets closed
  • S&P/TSX

    21,899.99
    -210.12 (-0.95%)
     
  • S&P 500

    5,123.41
    -75.65 (-1.46%)
     
  • DOW

    37,983.24
    -475.84 (-1.24%)
     
  • CAD/USD

    0.7262
    -0.0043 (-0.59%)
     
  • CRUDE OIL

    85.45
    +0.43 (+0.51%)
     
  • Bitcoin CAD

    91,920.09
    -5,739.57 (-5.88%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,360.20
    -12.50 (-0.53%)
     
  • RUSSELL 2000

    2,003.17
    -39.43 (-1.93%)
     
  • 10-Yr Bond

    4.4990
    -0.0770 (-1.68%)
     
  • NASDAQ

    16,175.09
    -267.10 (-1.62%)
     
  • VOLATILITY

    17.31
    +2.40 (+16.10%)
     
  • FTSE

    7,995.58
    +71.78 (+0.91%)
     
  • NIKKEI 225

    39,523.55
    +80.92 (+0.21%)
     
  • CAD/EUR

    0.6819
    +0.0013 (+0.19%)
     

American Electric (AEP) Q4 Earnings Miss, Revenues Fall Y/Y

American Electric Power Company, Inc. AEP reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.23, which missed the Zacks Consensus Estimate of $1.27 by 3.1%. The bottom line, however, improved 17.1% from $1.05 recorded in the year-ago quarter.

The company reported GAAP earnings of 64 cents per share compared with the year-ago quarter’s figure of 75 cents.

For 2023, the company generated adjusted EPS of $5.25, up from $5.09 recorded in 2022. The full-year bottom line, however, missed the consensus estimate of $5.27 by 0.4%.

Total Revenues

American Electric’s fourth-quarter operating revenues of $4,600 million lagged the Zacks Consensus Estimate of $5,217 million by 11.8%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,881 million.

ADVERTISEMENT

For 2023, the company generated revenues of $18.98 billion compared with $19.64 billion in 2022. The full-year top line also missed the consensus estimate of $19.69 billion.

Segmental Performance

Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $237.8 million from $208.7 million in the year-ago period.

Transmission & Distribution Utilities: Adjusted earnings totaled $188.6 million, up from $112.6 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted earnings of $159.3 million, down from $188.1 million in the year-ago quarter.

Generation and Marketing: Adjusted earnings amounted to $103.5 million, up from $81.1 million in the year-ago quarter.

All Other: The segment reported a loss of $42.3 million compared with a loss of $50.4 million in the year-ago period.

Highlights of the Result

In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 4.7% year over year, while Transmission & Distribution Utilities sales volume improved 9.9%.

Total expenses in 2023 were $15.43 billion, down 4.5% from the year-ago level.

Interest expenses amounted to $1.81 billion, up 29.4% from $1.40 billion in the year-ago quarter.

Guidance

American Electric reiterated its 2024 operating earnings guidance. It still expects to generate earnings in the band of $5.53-$5.73 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.55 per share, lower than the midpoint of the company’s projected 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

DTE Energy Company DTE reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.

DTE Energy initiated its 2024 operating EPS projection. The company expects operating EPS in the range of $6.54-$6.83.

Xcel Energy XEL reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.

The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.

CMS Energy Corporation CMS reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.

Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.

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

Xcel Energy Inc. (XEL) : Free Stock Analysis Report

DTE Energy Company (DTE) : Free Stock Analysis Report

American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report

CMS Energy Corporation (CMS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research