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American Electric (AEP) Q3 Earnings Beat, Revenues Fall Y/Y
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American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2023 operating earnings per share (EPS) of $1.77, which beat the Zacks Consensus Estimate of $1.73 by 2.3%. The bottom line also improved 9.3% from $1.62 recorded in the year-ago quarter.
The company reported GAAP earnings of $1.83 per share compared with the year-ago quarter’s figure of $1.33.
Total Revenues
American Electric’s third-quarter operating revenues of $5,303.3 million lagged the Zacks Consensus Estimate of $5,531.2 million by 4.1%. The reported figure also decreased 3.3% from the year-ago quarter’s level of $5,486.9 million.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $520 million from $499.8 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings totaled $206 million, up from $165.5 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $203.9 million, up from $171.4 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings amounted to $94.9 million, up from $68.7 million in the year-ago quarter.
All Other: The segment reported a loss of $97.9 million compared with a loss of $74.8 million in the year-ago period.
Quarterly Highlights
In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 2.1% year over year, while Transmission & Distribution Utilities sales volume improved 6.1%.
Total expenses in the third quarter were $2,231.1 million, up 1.1% from the year-ago period’s level.
Interest expenses amounted to $470.3 million, up 30.4% from $360.7 million incurred in the year-ago quarter.
Guidance
American Electric updated its 2023 operating earnings guidance. It now expects to generate earnings in the band of $5.24-$5.34 per share, narrower than the prior guided range of $5.19-$5.39. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.26 per share, lower than the midpoint of the company’s projected range.
The company still plans to invest $40 billion in the 2023-2027 period to further strengthen and expand its existing operations.
NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line, however, improved 6.7% year over year.
PG&E Corporation’s (PCG - Free Report) adjusted earnings per share of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.
PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. The figure missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported third-quarter 2023 adjusted operating earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 13.3%. However, the figure deteriorated 1.2% year over year.
Operating revenues totaled $2,456 million in the third quarter, which beat the Zacks Consensus Estimate of $2,423.5 million by 1.3%. The top line also improved 8.1% from the year-ago quarter’s figure of $2,076 million.
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American Electric (AEP) Q3 Earnings Beat, Revenues Fall Y/Y
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2023 operating earnings per share (EPS) of $1.77, which beat the Zacks Consensus Estimate of $1.73 by 2.3%. The bottom line also improved 9.3% from $1.62 recorded in the year-ago quarter.
The company reported GAAP earnings of $1.83 per share compared with the year-ago quarter’s figure of $1.33.
Total Revenues
American Electric’s third-quarter operating revenues of $5,303.3 million lagged the Zacks Consensus Estimate of $5,531.2 million by 4.1%. The reported figure also decreased 3.3% from the year-ago quarter’s level of $5,486.9 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 increased to $520 million from $499.8 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings totaled $206 million, up from $165.5 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $203.9 million, up from $171.4 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings amounted to $94.9 million, up from $68.7 million in the year-ago quarter.
All Other: The segment reported a loss of $97.9 million compared with a loss of $74.8 million in the year-ago period.
Quarterly Highlights
In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 2.1% year over year, while Transmission & Distribution Utilities sales volume improved 6.1%.
Total expenses in the third quarter were $2,231.1 million, up 1.1% from the year-ago period’s level.
Interest expenses amounted to $470.3 million, up 30.4% from $360.7 million incurred in the year-ago quarter.
Guidance
American Electric updated its 2023 operating earnings guidance. It now expects to generate earnings in the band of $5.24-$5.34 per share, narrower than the prior guided range of $5.19-$5.39. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.26 per share, lower than the midpoint of the company’s projected range.
The company still 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 #3 (Hold). 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 third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line, however, improved 6.7% year over year.
PG&E Corporation’s (PCG - Free Report) adjusted earnings per share of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.
PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. The figure missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported third-quarter 2023 adjusted operating earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 13.3%. However, the figure deteriorated 1.2% year over year.
Operating revenues totaled $2,456 million in the third quarter, which beat the Zacks Consensus Estimate of $2,423.5 million by 1.3%. The top line also improved 8.1% from the year-ago quarter’s figure of $2,076 million.