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American Electric (AEP) Q1 Earnings Lag Estimates, Sales Beat
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American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2023 operating earnings per share (EPS) of $1.11, which lagged the Zacks Consensus Estimate of $1.14 by 2.6%. The bottom line also declined by 9.1% from $1.22 in the year-ago quarter.
The company reported GAAP earnings of 77 cents per share compared with the year-ago quarter’s $1.41.
Total Revenues
American Electric’s first-quarter operating revenues of $4,700 million beat the Zacks Consensus Estimate of $4,552 million by 3.3%. The reported figure also increased 2.2% from the year-ago quarter’s $4,600 million.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Vertically Integrated Utility Operations: Adjusted earnings for the quarter decreased to $265.2 million from $298.2 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $125.7 million, down from $152.8 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $181.5 million, up from $173.1 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings were $45.2 million, up from $14.7 million in the year-ago quarter.
All Other: The loss for the reported quarter was $46 million compared with a loss of $22.4 million in the year-ago period.
Quarterly Highlights
In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 8.5%, while Transmission & Distribution Utilities sales volume improved 2.6% year over year.
Total expenses in the first quarter were $2,193.8 million, up 4.3% from the year-ago period.
Interest expenses were $415.7 million, up 32.6% from $313.4 million incurred in the year-ago quarter.
Guidance
American Electric reiterated its 2023 operating earnings expectation in the range of $5.19-$5.39 per share. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.26 per share, which is below the mid-point of the guidance range.
American Electric plans to invest $40 billion in the 2023-2027 time period to further strengthen and expand its existing operations.
NextEra Energy, Inc. (NEE - Free Report) released first-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 12%.
The Zacks Consensus Estimate for NEE’s 2023 earnings per share is $3.11, implying year-over-year growth of 7.3%.
Entergy Corporation (ETR - Free Report) reported first-quarter 2023 earnings of $1.14 per share, missing the Zacks Consensus Estimate of $1.34 by 14.9%.
The Zacks Consensus Estimate for ETR’s 2023 earnings per share is $6.69, implying a year-over-year increase of 4.2%.
ONE Gas Inc. (OGS - Free Report) reported first-quarter 2023 operating earnings of $1.84 per share, which missed the Zacks Consensus Estimate of $1.85 by 0.54%.
The Zacks Consensus Estimate for OGS’s 2023 earnings per share is $4.14, suggesting year-over-year growth of 1.47%.
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American Electric (AEP) Q1 Earnings Lag Estimates, Sales Beat
American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2023 operating earnings per share (EPS) of $1.11, which lagged the Zacks Consensus Estimate of $1.14 by 2.6%. The bottom line also declined by 9.1% from $1.22 in the year-ago quarter.
The company reported GAAP earnings of 77 cents per share compared with the year-ago quarter’s $1.41.
Total Revenues
American Electric’s first-quarter operating revenues of $4,700 million beat the Zacks Consensus Estimate of $4,552 million by 3.3%. The reported figure also increased 2.2% from the year-ago quarter’s $4,600 million.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter decreased to $265.2 million from $298.2 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $125.7 million, down from $152.8 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $181.5 million, up from $173.1 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings were $45.2 million, up from $14.7 million in the year-ago quarter.
All Other: The loss for the reported quarter was $46 million compared with a loss of $22.4 million in the year-ago period.
Quarterly Highlights
In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 8.5%, while Transmission & Distribution Utilities sales volume improved 2.6% year over year.
Total expenses in the first quarter were $2,193.8 million, up 4.3% from the year-ago period.
Interest expenses were $415.7 million, up 32.6% from $313.4 million incurred in the year-ago quarter.
Guidance
American Electric reiterated its 2023 operating earnings expectation in the range of $5.19-$5.39 per share. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.26 per share, which is below the mid-point of the guidance range.
American Electric plans to invest $40 billion in the 2023-2027 time period to further strengthen and expand its existing operations.
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.
Other Releases
NextEra Energy, Inc. (NEE - Free Report) released first-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 12%.
The Zacks Consensus Estimate for NEE’s 2023 earnings per share is $3.11, implying year-over-year growth of 7.3%.
Entergy Corporation (ETR - Free Report) reported first-quarter 2023 earnings of $1.14 per share, missing the Zacks Consensus Estimate of $1.34 by 14.9%.
The Zacks Consensus Estimate for ETR’s 2023 earnings per share is $6.69, implying a year-over-year increase of 4.2%.
ONE Gas Inc. (OGS - Free Report) reported first-quarter 2023 operating earnings of $1.84 per share, which missed the Zacks Consensus Estimate of $1.85 by 0.54%.
The Zacks Consensus Estimate for OGS’s 2023 earnings per share is $4.14, suggesting year-over-year growth of 1.47%.