We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Electric (AEP) Q2 Earnings Beat, Revenues Fall Y/Y
Read MoreHide Full Article
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.08, which beat the Zacks Consensus Estimate of $1.05 by 2.9%. The bottom line also improved 8% from $1 in the year-ago quarter.
The company reported GAAP earnings of $1.05 per share compared with the year-ago quarter’s earnings of 93 cents.
The year-over-year upside can be attributed to favorable weather conditions along with solid costs savings and efficiency programs.
Total Revenues
American Electric’s second-quarter revenues of $3.5 billion missed the Zacks Consensus Estimate of $3.8 billion by 7.9%. The reported figure also declined 2.8% from the year-ago quarter’s $3.6 billion.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Total adjusted expenses in the quarter were $1,778 million compared with $1,862 million a year ago.
Adjusted operating income was $738.7 million, up 26.1% from $585.6 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $270.4 million from $186.9 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $144.9 million, up from $131.3 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated operating earnings of $93.9 million, down from $154.6 million in the second quarter of 2019.
Generation and Marketing: Operating earnings were $55.9 million, up from $27.4 million in the year-ago quarter.
Corporate & Other: Operating losses were $31.6 million compared with operating loss of $6.6 million in the year-ago quarter.
Financial Update
As of Jun 30, 2020, American Electric had cash and cash equivalents of $348.8 million compared with $246.8 million as of Dec 31, 2019.
Long-term debt was $26.64 billion as of Jun 30, 2020, compared with $25.13 billion as of Dec 31, 2019.
Cash flow from operations was $1,746.2 million at the end of second-quarter 2020 compared with $1,800.8 million at the end of second-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 $4.29, lies below the mid-point of the guidance.
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, beating the Zacks Consensus Estimate of $2.50 by 4.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
American Electric (AEP) Q2 Earnings Beat, Revenues Fall Y/Y
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.08, which beat the Zacks Consensus Estimate of $1.05 by 2.9%. The bottom line also improved 8% from $1 in the year-ago quarter.
The company reported GAAP earnings of $1.05 per share compared with the year-ago quarter’s earnings of 93 cents.
The year-over-year upside can be attributed to favorable weather conditions along with solid costs savings and efficiency programs.
Total Revenues
American Electric’s second-quarter revenues of $3.5 billion missed the Zacks Consensus Estimate of $3.8 billion by 7.9%. The reported figure also declined 2.8% from the year-ago quarter’s $3.6 billion.
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 adjusted expenses in the quarter were $1,778 million compared with $1,862 million a year ago.
Adjusted operating income was $738.7 million, up 26.1% from $585.6 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $270.4 million from $186.9 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $144.9 million, up from $131.3 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated operating earnings of $93.9 million, down from $154.6 million in the second quarter of 2019.
Generation and Marketing: Operating earnings were $55.9 million, up from $27.4 million in the year-ago quarter.
Corporate & Other: Operating losses were $31.6 million compared with operating loss of $6.6 million in the year-ago quarter.
Financial Update
As of Jun 30, 2020, American Electric had cash and cash equivalents of $348.8 million compared with $246.8 million as of Dec 31, 2019.
Long-term debt was $26.64 billion as of Jun 30, 2020, compared with $25.13 billion as of Dec 31, 2019.
Cash flow from operations was $1,746.2 million at the end of second-quarter 2020 compared with $1,800.8 million at the end of second-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 $4.29, 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.
Other Utility Releases
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, beating the Zacks Consensus Estimate of $2.50 by 4.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>