American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of 75 cents, missing the Zacks Consensus Estimate of 82 cents by 8.5%.
Earnings also declined 21.1% from 95 cents reported a year ago.
Total Revenue
American Electric’s second-quarter revenues of $3.6 billion fell 7.7% from $3.9 billion in the year-ago quarter. The reported figure also missed the Zacks Consensus Estimate of $3.7 billion.
Quarterly Highlights
Operating expenses in the reported quarter were $1,638.3 million compared with $1,717.1 million a year ago.
Operating income in the quarter was $748 million, down 13.1% from $860.5 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $120.8 million from $209.4 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $111.2 million in the quarter, down from $124.6 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $94.6 million, up from $43.9 million recorded in the second quarter of 2016.
Generation and Marketing: Operating earnings were $46 million, down from $70.7 million in the year-ago quarter.
Financial Update
As of Jun 30, 2017, American Electric had $172.4 million in cash and cash equivalents compared with $210.5 million as of Dec 31, 2016.
Long-term debt was $19.55 billion as of Jun 30, 2017, compared with $20.26 billion as of Dec 31, 2016.
Cash flow from operations was $1,717 million in the first half of 2017 compared with $1,725.8 million in the prior-year period.
Guidance
American Electric reaffirmed its 2017 operating earnings guidance in the range of $3.55–$3.75.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up by 11.4% year over year.
WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.
Zacks Rank
American Electric currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of 75 cents, missing the Zacks Consensus Estimate of 82 cents by 8.5%.
Earnings also declined 21.1% from 95 cents reported a year ago.
Total Revenue
American Electric’s second-quarter revenues of $3.6 billion fell 7.7% from $3.9 billion in the year-ago quarter. The reported figure also missed the Zacks Consensus Estimate of $3.7 billion.
Quarterly Highlights
Operating expenses in the reported quarter were $1,638.3 million compared with $1,717.1 million a year ago.
Operating income in the quarter was $748 million, down 13.1% from $860.5 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $120.8 million from $209.4 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $111.2 million in the quarter, down from $124.6 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $94.6 million, up from $43.9 million recorded in the second quarter of 2016.
Generation and Marketing: Operating earnings were $46 million, down from $70.7 million in the year-ago quarter.
Financial Update
As of Jun 30, 2017, American Electric had $172.4 million in cash and cash equivalents compared with $210.5 million as of Dec 31, 2016.
Long-term debt was $19.55 billion as of Jun 30, 2017, compared with $20.26 billion as of Dec 31, 2016.
Cash flow from operations was $1,717 million in the first half of 2017 compared with $1,725.8 million in the prior-year period.
Guidance
American Electric reaffirmed its 2017 operating earnings guidance in the range of $3.55–$3.75.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up by 11.4% year over year.
WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.
Zacks Rank
American Electric currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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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