American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%. Moreover, the bottom line improved 9.3% from $1.08 per share in the year-ago quarter.
The company reported GAAP earnings of $1.16 per share compared with the year-ago quarter’s $1.05.
Total Revenues
American Electric’s second-quarter revenues of $3,826.5 million beat the Zacks Consensus Estimate of $3,826.2 million by a whisker.
Moreover, the reported figure improved 9.8% from the year-ago quarter’s $3,481 million.
Quarterly Highlights
Total expenses in the quarter were $1,892.6 million compared with $1,806.5 million a year ago.
Adjusted operating income was $800.9 million, up 8.4% from $738.7 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted operating earnings in the quarter decreased to $227 million from $270.4 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $153.7 million, up from $139.5 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted operating earnings of $168.9 million, up from $93.9 million in the second quarter of 2020.
Generation and Marketing: Adjusted operating earnings were $45.3 million, down from $55.9 million in the year-ago quarter.
Corporate & Other: Adjusted operating losses were $5.4 million compared with adjusted operating losses of $31.6 million in the year-ago quarter.
Financial Update
As of Jun 30, 2021, American Electric had cash and cash equivalents of $312.7 million compared with $392.7 million as of Dec 31, 2020.
Long-term debt was $30.66 billion as of Jun 30, 2021, compared with $29 billion as of Dec 31, 2020.
Cash flow from operations was $1,043.9 million at the end of Jun 30, 2021 compared with cash flow of $1,746.2 million as of Jun 30, 2020.
2021 Guidance
American Electric reaffirmed 2021 operating earnings guidance in the range of $4.55-$4.75 per share. The Zacks Consensus Estimate for 2021 earnings, pegged at $4.68 per share, lies above the midpoint of the guidance 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.
Upcoming Utility Releases
CenterPoint Energy (CNP - Free Report) is set to release its second-quarter results on Aug 5.
Duke Energy (DUK - Free Report) is set to release its second-quarter results on Aug 5.
Entergy (ETR - Free Report) is set to release its second-quarter results on Aug 4.
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American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%. Moreover, the bottom line improved 9.3% from $1.08 per share in the year-ago quarter.
The company reported GAAP earnings of $1.16 per share compared with the year-ago quarter’s $1.05.
Total Revenues
American Electric’s second-quarter revenues of $3,826.5 million beat the Zacks Consensus Estimate of $3,826.2 million by a whisker.
Moreover, the reported figure improved 9.8% from the year-ago quarter’s $3,481 million.
Quarterly Highlights
Total expenses in the quarter were $1,892.6 million compared with $1,806.5 million a year ago.
Adjusted operating income was $800.9 million, up 8.4% from $738.7 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted operating earnings in the quarter decreased to $227 million from $270.4 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $153.7 million, up from $139.5 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted operating earnings of $168.9 million, up from $93.9 million in the second quarter of 2020.
Generation and Marketing: Adjusted operating earnings were $45.3 million, down from $55.9 million in the year-ago quarter.
Corporate & Other: Adjusted operating losses were $5.4 million compared with adjusted operating losses of $31.6 million in the year-ago quarter.
Financial Update
As of Jun 30, 2021, American Electric had cash and cash equivalents of $312.7 million compared with $392.7 million as of Dec 31, 2020.
Long-term debt was $30.66 billion as of Jun 30, 2021, compared with $29 billion as of Dec 31, 2020.
Cash flow from operations was $1,043.9 million at the end of Jun 30, 2021 compared with cash flow of $1,746.2 million as of Jun 30, 2020.
2021 Guidance
American Electric reaffirmed 2021 operating earnings guidance in the range of $4.55-$4.75 per share. The Zacks Consensus Estimate for 2021 earnings, pegged at $4.68 per share, lies above the midpoint of the guidance 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.
Upcoming Utility Releases
CenterPoint Energy (CNP - Free Report) is set to release its second-quarter results on Aug 5.
Duke Energy (DUK - Free Report) is set to release its second-quarter results on Aug 5.
Entergy (ETR - Free Report) is set to release its second-quarter results on Aug 4.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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