American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%.
The bottom line also declined 15.4% from $1.30 reported a year ago.
Total Revenues
American Electric’s third-quarter revenues of $4.1 billion fell 12.8% from $4.7 billion in the year-ago quarter. The reported figure also missed the Zacks Consensus Estimate of $4.2 billion.
Quarterly Highlights
Operating expenses in the reported quarter were $1,695.2 million compared with $1,861.1 million a year ago.
Operating income in the quarter was $984.1 million, down 13.7% from $1,140.3 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $286.3 million from $349.1 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $144 million in the quarter, down from $155.7 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $75.5 million, up from $69 million recorded in the third quarter of 2016.
Generation and Marketing: Operating earnings were $32.1 million, down from $81 million in the year-ago quarter.
Corporate & Other: Operating earnings were $5.2 million, as against loss of $15.1 million in the year-ago quarter.
Financial Update
As of Sep 30, American Electric had $343.9 million in cash and cash equivalents compared with $210.5 million as of Dec 31, 2016.
Long-term debt was $18.36 billion as of Sep 30 compared with $20.26 billion as of Dec 31, 2016.
Cash flow from operations was $3,124.2 million in the first nine months of 2017 compared with $3,421 million in the prior-year period.
Guidance
American Electric has narrowed its 2017 operating earnings guidance in the range of $3.55–$3.68 from the prior guidance of $3.55–$3.75.
Peer Releases
Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. However, the reported number improved 1.7% from the year-ago figure.
DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48, which missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.
Zacks Rank
American Electric carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Release
Edison International (EIX - Free Report) is scheduled to report third-quarter 2017 results on Oct 30. The company carries a Zacks Rank #3.
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American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%.
The bottom line also declined 15.4% from $1.30 reported a year ago.
Total Revenues
American Electric’s third-quarter revenues of $4.1 billion fell 12.8% from $4.7 billion in the year-ago quarter. The reported figure also missed the Zacks Consensus Estimate of $4.2 billion.
Quarterly Highlights
Operating expenses in the reported quarter were $1,695.2 million compared with $1,861.1 million a year ago.
Operating income in the quarter was $984.1 million, down 13.7% from $1,140.3 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $286.3 million from $349.1 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $144 million in the quarter, down from $155.7 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $75.5 million, up from $69 million recorded in the third quarter of 2016.
Generation and Marketing: Operating earnings were $32.1 million, down from $81 million in the year-ago quarter.
Corporate & Other: Operating earnings were $5.2 million, as against loss of $15.1 million in the year-ago quarter.
Financial Update
As of Sep 30, American Electric had $343.9 million in cash and cash equivalents compared with $210.5 million as of Dec 31, 2016.
Long-term debt was $18.36 billion as of Sep 30 compared with $20.26 billion as of Dec 31, 2016.
Cash flow from operations was $3,124.2 million in the first nine months of 2017 compared with $3,421 million in the prior-year period.
Guidance
American Electric has narrowed its 2017 operating earnings guidance in the range of $3.55–$3.68 from the prior guidance of $3.55–$3.75.
Peer Releases
Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. However, the reported number improved 1.7% from the year-ago figure.
DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48, which missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.
Zacks Rank
American Electric carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Release
Edison International (EIX - Free Report) is scheduled to report third-quarter 2017 results on Oct 30. The company carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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