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American Electric (AEP) Q3 Earnings Miss, Revenues Beat

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American Electric Power Company, Inc.(AEP - Free Report) reported third-quarter 2021 adjusted earnings per share of $1.43, which missed the Zacks Consensus Estimate of $1.44 by 0.7%. The bottom line declined 2.7% from $1.47 per share in the year-ago quarter.

The company reported GAAP earnings of $1.59 per share compared with the year-ago quarter’s $1.51.

Total Revenues

American Electric’s third-quarter revenues of $4.60 billion beat the Zacks Consensus Estimate of $4.44 billion by 3.6%.

The reported figure improved 12.2% from the year-ago quarter’s $4.10 billion.

Segmental Performance

Vertically Integrated Utility Operations: Earnings in the quarter increased to $437.7 million from $393.5 million in the year-ago quarter.

Transmission & Distribution Utilities: Earnings were $155.9 million, up from $147.4 million in the year-ago quarter.

AEP Transmission Holdco:This segment generated earnings of $166.8 million, up from $138.3 million in the third quarter of 2020.

Generation and Marketing:Adjusted earnings were $21.4 million, down from $63.2 million in the year-ago quarter.

Corporate & Other:Losses were $65.1 million compared with losses of $47.3 million in the year-ago quarter.

Quarterly Highlights

Adjusted income was $716.7 million, down 1.6% from $728.2 million in the year-ago quarter.

Financial Update

As of Sep 30, 2021, American Electric had cash and cash equivalents of $1,372.7 million compared with $392.7 million as of Dec 31, 2020.

Long-term debt was $32.06 billion as of Sep 30, 2021, compared with $29 billion as of Dec 31, 2020.

Cash flow from operations was $2,973 million at the end of Sep 30, 2021, compared with $2,922 million as of Sep 30, 2020.

2021 Guidance

American Electric narrowed its 2021 operating earnings guidance tothe range of $4.65-$4.75 per share, from the prior guided range of $4.55-$4.75. The Zacks Consensus Estimate for 2021 earnings,which ispegged at $4.69 per share, lies just below the mid-point of the new 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.

Recent Utility Releases

Avangrid, Inc (AGR - Free Report) third-quarter 2021 adjusted earnings per share (EPS) of 34 cents per share outpaced the Zacks Consensus Estimate of 30 cents by 13.3%.

DTE Energy Company (DTE - Free Report) reported third-quarter 2021 adjusted earnings of $1.72 per share, which missed the Zacks Consensus Estimate of $1.83 by 6%.

NextEra Energy, Inc (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which exceeded the Zacks Consensus Estimate of 72 cents by 4.2%.

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