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American Electric (AEP) Q3 Earnings Top; Tweaks EPS View
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American Electric Power Co., Inc.(AEP - Free Report) reported third-quarter 2016 operating earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.21 by 7.4%.
Earnings also improved 22.6% year over year supported by continued strategic investments in its regulated segments. Particularly, AEP Transmission Holding Co. business contributed 14 cents per share to earnings in the third quarter, while favourable weather contributed 7 cents per share.
Total Revenue
American Electric Power’s third-quarter revenues of $4,652.2 million increased 2% from $4,565.1 million in the year-ago quarter. The reported figure also exceeded the Zacks Consensus Estimate of $4,607.5 million.
Operating expenses incurred in the reported quarter were $1,861.1 million compared with $1,897 million a year ago.
Operating income in third-quarter 2016 was $1,140.3 million, up 16.2% from $981.4 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $349.1 million from $273.5 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $155.5 million in the quarter, up from $113 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $69 million, up from $45.6 million in the third quarter of 2015, backed by increased transmission investment.
Generation and Marketing: Operating earnings were $81 million, down from $94.5 million in the second quarter of 2016.
As of Sep 30, 2016, American Electric Power had $212.2 million in cash and cash equivalents compared with $176.4 million as of Dec 31, 2015.
Long-term debt was $17.32 billion as of Sep 30, 2016, compared with $17.74 billion as of Dec 31, 2015.
Cash flow from operations was $3.42 billion for the first nine months of 2016 compared with $3.91 billion a year ago.
Guidance
American Electric Power Company has revised its 2016 operating earnings guidance. The company currently expects to deliver earnings in the range of $3.75–$3.85, compared with the earlier guidance range of $3.60– $3.80 per share.
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
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American Electric (AEP) Q3 Earnings Top; Tweaks EPS View
American Electric Power Co., Inc.(AEP - Free Report) reported third-quarter 2016 operating earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.21 by 7.4%.
Earnings also improved 22.6% year over year supported by continued strategic investments in its regulated segments. Particularly, AEP Transmission Holding Co. business contributed 14 cents per share to earnings in the third quarter, while favourable weather contributed 7 cents per share.
Total Revenue
American Electric Power’s third-quarter revenues of $4,652.2 million increased 2% from $4,565.1 million in the year-ago quarter. The reported figure also exceeded the Zacks Consensus Estimate of $4,607.5 million.
AMER ELEC PWR Price, Consensus and EPS Surprise
AMER ELEC PWR Price, Consensus and EPS Surprise | AMER ELEC PWR Quote
Quarterly Highlights
Operating expenses incurred in the reported quarter were $1,861.1 million compared with $1,897 million a year ago.
Operating income in third-quarter 2016 was $1,140.3 million, up 16.2% from $981.4 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $349.1 million from $273.5 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $155.5 million in the quarter, up from $113 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $69 million, up from $45.6 million in the third quarter of 2015, backed by increased transmission investment.
Generation and Marketing: Operating earnings were $81 million, down from $94.5 million in the second quarter of 2016.
Financial Update
As of Sep 30, 2016, American Electric Power had $212.2 million in cash and cash equivalents compared with $176.4 million as of Dec 31, 2015.
Long-term debt was $17.32 billion as of Sep 30, 2016, compared with $17.74 billion as of Dec 31, 2015.
Cash flow from operations was $3.42 billion for the first nine months of 2016 compared with $3.91 billion a year ago.
Guidance
American Electric Power Company has revised its 2016 operating earnings guidance. The company currently expects to deliver earnings in the range of $3.75–$3.85, compared with the earlier guidance range of $3.60– $3.80 per share.
Zacks Rank
American Electric Power currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>