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American Electric (AEP) Lags Q2 Earnings, Reaffirms 2023 View
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American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined by 5.8% from $1.20 in the year-ago quarter.
The company reported GAAP earnings of $1.01 per share compared with the year-ago quarter’s $1.02.
Total Revenues
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s $4,639.7 million.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Vertically Integrated Utility Operations: Adjusted earnings for the quarter decreased to $260.4 million from $301.2 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $156.5 million, down from $164.8 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $196.5 million, up from $141.8 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings were $66.1 million, down from $90.9 million in the year-ago quarter.
All Other: The loss for the reported quarter was $97.3 million compared with a loss of $81 million in the year-ago period.
Quarterly Highlights
In the reported quarter, electricity sales volumes from Vertically Integrated Utilities dropped 5.2%, while Transmission & Distribution Utilities sales volumes declined 1.7% year over year.
Total expenses in the second quarter were $3,497.8 million, down 3.8% from the year-ago period.
Interest expenses were $460 million, up 40.4% from $327.6 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, lower than the midpoint of the guidance range.
American Electric plans to invest $40 billion in the 2023-2027 period to further strengthen and expand its existing operations.
Zacks Rank
American Electric currently carries a Zacks Rank #4 (Sell).
NextEra Energy, Inc. (NEE - Free Report) released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%. The bottom line was also up 8.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the second quarter, NextEra’s operating revenues were $7,349 million, which surpassed the Zacks Consensus Estimate of $6,681 million by 10%. The top line improved 41.8% year over year.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 23 cents in the second quarter of 2023 lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line decreased 8% from the year-ago quarter’s reported figure.
In the second quarter, PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.
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American Electric (AEP) Lags Q2 Earnings, Reaffirms 2023 View
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined by 5.8% from $1.20 in the year-ago quarter.
The company reported GAAP earnings of $1.01 per share compared with the year-ago quarter’s $1.02.
Total Revenues
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s $4,639.7 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 $260.4 million from $301.2 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $156.5 million, down from $164.8 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $196.5 million, up from $141.8 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings were $66.1 million, down from $90.9 million in the year-ago quarter.
All Other: The loss for the reported quarter was $97.3 million compared with a loss of $81 million in the year-ago period.
Quarterly Highlights
In the reported quarter, electricity sales volumes from Vertically Integrated Utilities dropped 5.2%, while Transmission & Distribution Utilities sales volumes declined 1.7% year over year.
Total expenses in the second quarter were $3,497.8 million, down 3.8% from the year-ago period.
Interest expenses were $460 million, up 40.4% from $327.6 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, lower than the midpoint of the guidance range.
American Electric plans to invest $40 billion in the 2023-2027 period to further strengthen and expand its existing operations.
Zacks Rank
American Electric currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
NextEra Energy, Inc. (NEE - Free Report) released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%. The bottom line was also up 8.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the second quarter, NextEra’s operating revenues were $7,349 million, which surpassed the Zacks Consensus Estimate of $6,681 million by 10%. The top line improved 41.8% year over year.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 23 cents in the second quarter of 2023 lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line decreased 8% from the year-ago quarter’s reported figure.
In the second quarter, PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.