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American Electric's (AEP) Q4 Earnings Beat, Revenues Up Y/Y

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American Electric Power Company, Inc. (AEP - Free Report) reported fourth-quarter 2022 operating earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate of 99 cents by 6.1%. The bottom line also increased 7.1% from 98 cents in the year-ago quarter.

The company reported GAAP earnings of 75 cents per share compared with the year-ago quarter’s $1.07.

For full-year 2022, AEP reported operating earnings of $4.51 per share compared with $4.97 in the year-ago quarter. The full-year earnings, however, missed the Zacks Consensus Estimate of $5.03 per share.

Total Revenues

American Electric’s fourth-quarter operating revenues of $4,994.8 million beat the Zacks Consensus Estimate of $4,254.9 million by 17.4%. The reported figure also increased 22.3% from the year-ago quarter’s $4,085.2 million.

For full-year 2022, operating revenues came in at $19.54 billion, higher than $16.70 billion recorded in 2021. The full-year revenues also surpassed the Zacks Consensus Estimate of $18.97 billion.

Segmental Performance

Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $208.7 million from $196.1 million in the year-ago period.

Transmission & Distribution Utilities: Adjusted earnings were $112.6 million, down from $128.5 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted earnings of $188.1 million, up from $166.1 million in the year-ago quarter.

Generation and Marketing: Adjusted earnings were $81.1 million, up from $30.4 million in the year-ago quarter.

All Other: The loss for the reported quarter was $50.4 million compared with a loss of $24.9 million in the year-ago period.

Quarterly Highlights

Total expenses in the fourth quarter were $2,296.9 million, up 11.7% from the year-ago period.

Interest expenses were $394.4 million, up 29.9% from $303.7 million year over year.

Guidance

American Electric reiterated the 2023 operating earnings expectation in the range of $5.19-$5.39 per share. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.03 per share, which lies below 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.

Recent Utility Releases

CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2022 adjusted EPS of 60 cents from continuing operations, which came in line with the Zacks Consensus Estimate. The reported figure improved 27.7% on a year-over-year basis.

For the quarter under review, CMS Energy’s operating revenues were $2,278 million, which surpassed the Zacks Consensus Estimate of $2,185.3 million by 4.2%. The top line improved 12.1% on a year-over-year basis.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter.

For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.

Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.06 by 4.7%. The bottom line also improved 26.1% year over year.

Total operating revenues came in at $7,351 million, which increased 20.2% from $6,117 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $6,608 million by 11.2%.
 

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