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American Electric (AEP) Beats on Q2 Earnings, Keeps View
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American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
Earnings also improved 8% year over year supported by strategic investments in its regulated businesses. Moreover, growth in residential and commercial customer sales, which provide higher margins, added to the positives.
American Electric Power’s second-quarter revenues of $3,887.2 million decreased 1.4% from $3,940.6 million in the year-ago quarter. The reported figure also missed the Zacks Consensus Estimate of $3,946 million.
Quarterly Highlights of the Release
Operating expenses incurred in the reported quarter were $1,717.1 million compared with $1,777.4 million a year ago.
Operating income in second-quarter 2016 was $860.5 million, up 6.6% from $807.1 million a year ago.
Quarterly Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $209.4 million from $206.9 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $124.6 million in the quarter, up from $77.6 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $94.6 million, up from $65.2 million in the second quarter of 2015, backed by increased transmission investment.
Generation and Marketing: Operating earnings were $46 million, down from $80.3 million in the second quarter of 2015.
Financial Update
As of Jun 30, 2016, American Electric Power had $246.8 million in cash and cash equivalents compared with $176.4 million as of Dec 31, 2015.
Long-term debt was $17.54 billion as of Jun 30, 2016, compared with $17.74 billion as of Dec 31, 2015.
Cash flow from operations was $1.73 billion in the first six months of 2016 versus $2.2 billion a year ago.
Guidance
American Electric Power Company reiterated its 2016 operating earnings guidance of $3.60 to $3.80 per share.
Zacks Rank
American Electric Power currently carries a Zacks Rank #3 (Hold).
Peer Release
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
Upcoming Releases
Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to report second-quarter 2016 results on Jul 29, 2016.
Duke Energy Corp. (DUK - Free Report) is scheduled to report second-quarter 2016 results on Aug 4, 2016.
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American Electric (AEP) Beats on Q2 Earnings, Keeps View
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
Earnings also improved 8% year over year supported by strategic investments in its regulated businesses. Moreover, growth in residential and commercial customer sales, which provide higher margins, added to the positives.
Total Revenue
American Electric Power’s second-quarter revenues of $3,887.2 million decreased 1.4% from $3,940.6 million in the year-ago quarter. The reported figure also missed the Zacks Consensus Estimate of $3,946 million.
Quarterly Highlights of the Release
Operating expenses incurred in the reported quarter were $1,717.1 million compared with $1,777.4 million a year ago.
Operating income in second-quarter 2016 was $860.5 million, up 6.6% from $807.1 million a year ago.
Quarterly Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $209.4 million from $206.9 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $124.6 million in the quarter, up from $77.6 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $94.6 million, up from $65.2 million in the second quarter of 2015, backed by increased transmission investment.
Generation and Marketing: Operating earnings were $46 million, down from $80.3 million in the second quarter of 2015.
Financial Update
As of Jun 30, 2016, American Electric Power had $246.8 million in cash and cash equivalents compared with $176.4 million as of Dec 31, 2015.
Long-term debt was $17.54 billion as of Jun 30, 2016, compared with $17.74 billion as of Dec 31, 2015.
Cash flow from operations was $1.73 billion in the first six months of 2016 versus $2.2 billion a year ago.
Guidance
American Electric Power Company reiterated its 2016 operating earnings guidance of $3.60 to $3.80 per share.
Zacks Rank
American Electric Power currently carries a Zacks Rank #3 (Hold).
Peer Release
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
Upcoming Releases
Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to report second-quarter 2016 results on Jul 29, 2016.
Duke Energy Corp. (DUK - Free Report) is scheduled to report second-quarter 2016 results on Aug 4, 2016.
AMER ELEC PWR Price, Consensus and EPS Surprise
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