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What's in Store for American Electric (AEP) in Q2 Earnings?
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American Electric Power Company, Inc (AEP - Free Report) is slated to release its second-quarter 2023 results on Jul 27 before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.63%. American Electric has a trailing four-quarter earnings surprise of 2.08%, on average.
Factors to Note
Most of the AEP’s service territories observed warm weather conditions in the second quarter. This may have increased the electricity demand for cooling purposes from the company’s customers during summer. This is likely to have contributed to American Electric's top line in the second quarter.
New large customer volumes in the commercial and industrial classes are likely to have boosted the load growth of the company, thus aiding its top line in the second quarter.
However, some parts of its service territories experienced severe weather conditions along with tornados. This may have disrupted the smooth flow of electricity to its customers, thus negatively impacting American Electric's overall revenues in the to-be-reported quarter to some extent.
The Zacks Consensus Estimate for AEP’s second-quarter revenues is pegged at $4.70 billion. This suggests 2.4% growth from the year-ago quarter.
As mentioned above, American Electric’s service territories witnessed severe weather patterns, which may have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repair. This is likely to have dented AEP’s bottom line in the to-be-reported quarter.
However, lower depreciation costs due to the expiration of the Rockport Unit 2 lease may have partially offset the impact of higher operating expenses.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.14 per share. This indicates a decrease of 5% from the prior-year reported figure.
American Electric Power Company, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AEP carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for its second-quarter sales, pegged at $4.40 billion, implies growth of 3.8% from the prior-year quarter’s tally. EXC has a four-quarter negative earnings surprise of 1.47%. The Zacks Consensus Estimate for Exelon’s second-quarter earnings is pegged at 41 cents per share.
Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +3.97% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 64 cents per share, flat with the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for PEG’s second-quarter sales is pegged at $2.03 billion. This suggests a 2.3% decline from the prior-year reported figure.
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +11.82% and a Zacks Rank #3. The Zacks Consensus Estimate for Ameren’s second-quarter revenues is pegged at $1.73 billion, implying growth of 0.3% from the year-ago quarter.
The Zacks Consensus Estimate for AEE’s second-quarter earnings is pegged at 70 cents per share. The company’s four-quarter average earnings surprise stands at 4.70%.
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What's in Store for American Electric (AEP) in Q2 Earnings?
American Electric Power Company, Inc (AEP - Free Report) is slated to release its second-quarter 2023 results on Jul 27 before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.63%. American Electric has a trailing four-quarter earnings surprise of 2.08%, on average.
Factors to Note
Most of the AEP’s service territories observed warm weather conditions in the second quarter. This may have increased the electricity demand for cooling purposes from the company’s customers during summer. This is likely to have contributed to American Electric's top line in the second quarter.
New large customer volumes in the commercial and industrial classes are likely to have boosted the load growth of the company, thus aiding its top line in the second quarter.
However, some parts of its service territories experienced severe weather conditions along with tornados. This may have disrupted the smooth flow of electricity to its customers, thus negatively impacting American Electric's overall revenues in the to-be-reported quarter to some extent.
The Zacks Consensus Estimate for AEP’s second-quarter revenues is pegged at $4.70 billion. This suggests 2.4% growth from the year-ago quarter.
As mentioned above, American Electric’s service territories witnessed severe weather patterns, which may have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repair. This is likely to have dented AEP’s bottom line in the to-be-reported quarter.
However, lower depreciation costs due to the expiration of the Rockport Unit 2 lease may have partially offset the impact of higher operating expenses.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.14 per share. This indicates a decrease of 5% from the prior-year reported figure.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. price-eps-surprise | American Electric Power Company, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AEP carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Exelon Corporation (EXC - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its second-quarter sales, pegged at $4.40 billion, implies growth of 3.8% from the prior-year quarter’s tally. EXC has a four-quarter negative earnings surprise of 1.47%. The Zacks Consensus Estimate for Exelon’s second-quarter earnings is pegged at 41 cents per share.
Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +3.97% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 64 cents per share, flat with the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for PEG’s second-quarter sales is pegged at $2.03 billion. This suggests a 2.3% decline from the prior-year reported figure.
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +11.82% and a Zacks Rank #3. The Zacks Consensus Estimate for Ameren’s second-quarter revenues is pegged at $1.73 billion, implying growth of 0.3% from the year-ago quarter.
The Zacks Consensus Estimate for AEE’s second-quarter earnings is pegged at 70 cents per share. The company’s four-quarter average earnings surprise stands at 4.70%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.