Advertisement
Canada markets close in 2 hours 12 minutes

  • S&P/TSX

    21,829.74
    +121.30 (+0.56%)
     

  • S&P 500

    4,987.34
    -23.78 (-0.47%)
     

  • DOW

    38,019.26
    +243.88 (+0.65%)
     

  • CAD/USD

    0.7277
    +0.0014 (+0.19%)
     

  • CRUDE OIL

    83.61
    +0.88 (+1.06%)
     

  • Bitcoin CAD

    88,625.98
    +1,721.36 (+1.98%)
     

  • CMC Crypto 200

    1,377.94
    +65.32 (+4.98%)
     

  • GOLD FUTURES

    2,413.10
    +15.10 (+0.63%)
     

  • RUSSELL 2000

    1,944.51
    +1.55 (+0.08%)
     

  • 10-Yr Bond

    4.6250
    -0.0220 (-0.47%)
     

  • NASDAQ

    15,382.14
    -219.36 (-1.41%)
     

  • VOLATILITY

    18.61
    +0.61 (+3.38%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6826
    +0.0005 (+0.07%)
     
MARKETS LIVE BLOG:

S&P 500 SLIPS BELOW 5,000; NASDAQ SINKS ON NETFLIX DRAG

Fed's Goolsbee says 'It makes sense to wait' before cutting rates

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

Zacks Equity Research

American Electric Power Co., Inc. AEP reported fourth-quarter 2019 adjusted earnings per share of 60 cents, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 16.7% from 72 cents in the year-ago quarter.

The company reported GAAP earnings of 31 cents per share compared with the year-ago quarter’s 74 cents.

The year-over-year downside can be attributed to lower revenues.

For 2019, the company reported adjusted earnings of $4.24 per share, which surpassed the Zacks Consensus Estimate of $4.22 by 0.5%. The full-year earnings increased 7.3% from the prior year and came in line with the higher end of the guided range of $4.14-$4.24 per share.

ADVERTISEMENT

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

Total Revenues

American Electric’s fourth-quarter revenues of $3.6 billion missed the Zacks Consensus Estimate of $4.1 billion by 12.2%. The reported figure declined 5.3% from the year-ago quarter’s $3.8 billion.

For 2019, the company reported revenues of $15.6 billion, which missed the Zacks Consensus Estimate of $16 billion by 2.5%. The reported figure also declined 3.7% from the year-ago figure of $16.2 billion.

Quarterly Highlights

Operating expenses in the quarter were $2,038.7 million compared with $1,912.8 million a year ago.

Operating income was $471.4 million, down 16.3% from $563.1 million in the year-ago quarter.

Segmental Performance

Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $136.5 million from $130.5 million a year ago.

Transmission & Distribution Utilities: Operating earnings were $71 million, down from $132.1 million a year ago.

AEP Transmission Holdco: This segment generated operating income of $111.5 million, down from $791.5 million in the fourth quarter of 2018.

Generation and Marketing: Operating earnings were $0.1 million, down from $35.2 million in the year-ago quarter.

Corporate & Other: Operating losses were $25 million compared with operating loss of $34.9 million in the year-ago quarter.

Financial Update

As of Dec 31, 2019, American Electric had cash and cash equivalents of $246.8 million compared with $234.1 million as of Dec 31, 2018.

Long-term debt was $25.13 billion as of Dec 31, 2019, compared with $21.65 billion as of Dec 31, 2018.

Cash flow from operations was $4.27 billion during 2019 compared with $5.22 million in 2018.

2019 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 $4.39, lies above the mid-point of the company’s 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

Duke Energy Corporation DUK reported fourth-quarter 2019 adjusted earnings of 91 cents per share, which surpassed the Zacks Consensus Estimate of 88 cents by 3.4%.

NextEra Energy NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

Dominion Energy D reported fourth-quarter 2019 operating earnings of $1.18 per share, which beat the Zacks Consensus Estimate of $1.16 by 1.7%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


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
 
Dominion Energy Inc. (D) : Free Stock Analysis Report
 
Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.