Back to top

Image: Bigstock

American Electric (AEP) Q1 Earnings Miss, Revenues Up Y/Y

Read MoreHide Full Article

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%. However, the bottom line improved 12.7% from $1.02 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.

Total Revenues

American Electric’s first-quarter revenues of $4.3 billion exceeded the Zacks Consensus Estimate of $4.1 billion by 4.9%.

Moreover, the reported figure improved 16.2% from the year-ago quarter’s $3.7 billion.

Quarterly Highlights

Total expenses in the quarter were $1,910.1 million compared with $1,841.5 million a year ago.

Operating income was $804.6 million, up 5.5% from $763 million in the year-ago quarter.

Segmental Performance

Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $270.4 million from $247.2 million in the year-ago quarter.

Transmission & Distribution Utilities: Operating earnings were $114.4 million, down from $117 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated operating earnings of $172 million, up from $140.6 million in the first quarter of 2020.

Generation and Marketing: Operating earnings were $32.1 million, down from $34.7 million in the year-ago quarter.

Corporate & Other: Operating losses were $18.4 million compared with operating losses of $35.3 million in the year-ago quarter.

American Electric Power Company, Inc. Price, Consensus and EPS Surprise

Financial Update

As of Mar 31, 2021, American Electric had cash and cash equivalents of $273.2 million compared with $392.7 million as of Dec 31, 2020.

Long-term debt was $30.2 billion as of Mar 31, 2021, compared with $29 billion as of Dec 31, 2020.

Cash used in operations was $117.2 million during first-quarter 2021 compared with the cash flow of $615.7 million in first-quarter 2020.

2021 Guidance

American Electric reaffirmed 2021 operating earnings guidance in the range of $4.5-$4.75 per share. The Zacks Consensus Estimate for 2021 earnings, pegged at $4.67 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.

A Recent Utility Release

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%.

Upcoming Releases

Xcel Energy (XEL - Free Report) is scheduled to announce first-quarter 2021 results on Apr 29. The Zacks Consensus Estimate for earnings per share is pegged at 61 cents.

Dominion Energy (D - Free Report) is scheduled to announce first-quarter 2021 results on May 4. The Zacks Consensus Estimate for earnings per share is pegged at $1.08.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>