American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.19 by 2.5%. The bottom line also improved 6% from $1.15 per share in the year-ago quarter.
The company reported GAAP earnings of $1.41 per share compared with the year-ago quarter’s $1.16. The difference between GAAP and operating earnings for the reported quarter was primarily due to the mark-to-market impact of economic hedging activities.
Total Revenues
American Electric’s first-quarter revenues of $4,592.6 million beat the Zacks Consensus Estimate of $4,496 million by 2.1%.
The reported figure also improved 7.3% from the year-ago quarter’s $4,281.1 million.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $298.2 million from $270.4 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $152.8 million, up from $114.4 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $173.1 million, up from $172 million in first-quarter 2021.
Generation and Marketing: Adjusted earnings were $14.7 million, down from $32.1 million in the year-ago quarter.
Corp & Other: Loss for the reported quarter was $22.4 million compared with a loss of $18.4 million in the year-ago period.
Quarterly Highlights
Total expenses for the first quarter were $2,100.4 million, up 9.9% from the year-ago period.
For the reported quarter, sales volumes to residential, industrial and commercial customers improved 0.8%, 5.6% and 4.2% year over year, respectively.
Interest expenses were $313.4 million, up 8% year over year.
Financial Update
As of Mar 31, 2022, American Electric had cash and cash equivalents of $675.6 million compared with $403.4 million on Dec 31, 2021.
Long-term debt was $30.9 billion as of Mar 31, 2022 compared with $31.3 billion on Dec 31, 2021.
Cash flow from operations for the first quarter was $1,622.2 million against $117.2 million cash used in operations in the year-ago period.
Guidance
American Electric reiterated 2022 operating earnings expectation in the range of $4.87-$5.07 per share. The Zacks Consensus Estimate for 2022 earnings is pegged at $4.99 per share, a tad higher than the mid-point of the guidance range.
American Electric plans to invest $38 billion in the 2022-2026 time frame, out of which 65% will be utilized for strengthening transmission and distribution lines. Also, 21% of the expenditure will be directed to strengthen renewable operations.
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 Releases
NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 8.8%. The Zacks Consensus Estimate for 2022 earnings per share of $2.81 indicates year-over-year growth of 10.2%.
FirstEnergy Corporation (FE - Free Report) came up with first-quarter 2022 operating earnings per share of 60 cents, which missed the Zacks Consensus Estimate of 62 cents by 3.2%.
FirstEnergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for second-quarter 2022 earnings per share of 60 cents suggests year-over-year growth of 1.7%.
Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%.
Entergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for 2022 earnings per share of $6.34 implies year-over-year growth of 5.3%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.19 by 2.5%. The bottom line also improved 6% from $1.15 per share in the year-ago quarter.
The company reported GAAP earnings of $1.41 per share compared with the year-ago quarter’s $1.16. The difference between GAAP and operating earnings for the reported quarter was primarily due to the mark-to-market impact of economic hedging activities.
Total Revenues
American Electric’s first-quarter revenues of $4,592.6 million beat the Zacks Consensus Estimate of $4,496 million by 2.1%.
The reported figure also improved 7.3% from the year-ago quarter’s $4,281.1 million.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $298.2 million from $270.4 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $152.8 million, up from $114.4 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $173.1 million, up from $172 million in first-quarter 2021.
Generation and Marketing: Adjusted earnings were $14.7 million, down from $32.1 million in the year-ago quarter.
Corp & Other: Loss for the reported quarter was $22.4 million compared with a loss of $18.4 million in the year-ago period.
Quarterly Highlights
Total expenses for the first quarter were $2,100.4 million, up 9.9% from the year-ago period.
For the reported quarter, sales volumes to residential, industrial and commercial customers improved 0.8%, 5.6% and 4.2% year over year, respectively.
Interest expenses were $313.4 million, up 8% year over year.
Financial Update
As of Mar 31, 2022, American Electric had cash and cash equivalents of $675.6 million compared with $403.4 million on Dec 31, 2021.
Long-term debt was $30.9 billion as of Mar 31, 2022 compared with $31.3 billion on Dec 31, 2021.
Cash flow from operations for the first quarter was $1,622.2 million against $117.2 million cash used in operations in the year-ago period.
Guidance
American Electric reiterated 2022 operating earnings expectation in the range of $4.87-$5.07 per share. The Zacks Consensus Estimate for 2022 earnings is pegged at $4.99 per share, a tad higher than the mid-point of the guidance range.
American Electric plans to invest $38 billion in the 2022-2026 time frame, out of which 65% will be utilized for strengthening transmission and distribution lines. Also, 21% of the expenditure will be directed to strengthen renewable operations.
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 Releases
NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 8.8%. The Zacks Consensus Estimate for 2022 earnings per share of $2.81 indicates year-over-year growth of 10.2%.
FirstEnergy Corporation (FE - Free Report) came up with first-quarter 2022 operating earnings per share of 60 cents, which missed the Zacks Consensus Estimate of 62 cents by 3.2%.
FirstEnergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for second-quarter 2022 earnings per share of 60 cents suggests year-over-year growth of 1.7%.
Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%.
Entergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for 2022 earnings per share of $6.34 implies year-over-year growth of 5.3%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Get the latest research report on NEE - FREE
Get the latest research report on ETR - FREE
Get the latest research report on FE - FREE
Get the latest research report on AEP - FREE