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What's in Store for American Electric (AEP) in Q4 Earnings?
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American Electric Power Company, Inc (AEP - Free Report) is slated to release fourth-quarter and full-year 2023 results on Feb 27, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 2.31%. American Electric has a trailing four-quarter earnings surprise of 1.22%, on average.
Factors to Note
AEP’s service territories observed mixed weather conditions in the fourth quarter. While some parts of its service areas witnessed warmer-than-normal temperatures, other parts observed below-normal weather patterns. Such weather conditions can be expected to have had a moderate impact on American Electric's top line in the fourth quarter.
American Electric Power Company, Inc. Price and EPS Surprise
Other factors like increased retail load, transmission revenues as well as positive rate changes in Texas and Ohio must have also aided AEP’s quarterly results.
Benefits from favorable investments in the prior quarters, along with solid sales expectations, are likely to have bolstered the company’s bottom-line performance amid adverse impacts of higher depreciation and interest expenses.
Q4 Expectations
The Zacks Consensus Estimate for AEP’s fourth-quarter revenues is pegged at $5.22 billion, indicating year-over-year growth of 6.9%.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.27 per share, implying an increase of 21% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Electric this time around. 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 -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some Utility players with the right combination of elements to come up with an earnings beat this reporting cycle.
Sempra Energy (SRE - Free Report) has an Earnings ESP of +0.29% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 9.03%.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales is pegged at $4.03 billion, indicating growth of 16.7% from that recorded in the prior-year quarter. The consensus mark for earnings is pinned at $1.13 per share.
AES Corp (AES - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank #3 at present. The company delivered an earnings surprise of 9.09% in the last reported quarter.
The Zacks Consensus Estimate for AES’ fourth-quarter sales is pegged at $3.10 billion, indicating growth of 1.3% from that recorded in the prior-year quarter. The consensus mark for earnings is pinned at 69 cents per share, implying an improvement of 40.8% from the prior-year quarter’s reported figure.
Consolidated Water (CWCO - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #2 at present. The company delivered a four-quarter average earnings surprise of 61.56%.
The Zacks Consensus Estimate for CWCO’s fourth-quarter sales is pegged at $45 million. The consensus mark for earnings is pinned at 45 cents per share.
Image: Bigstock
What's in Store for American Electric (AEP) in Q4 Earnings?
American Electric Power Company, Inc (AEP - Free Report) is slated to release fourth-quarter and full-year 2023 results on Feb 27, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 2.31%. American Electric has a trailing four-quarter earnings surprise of 1.22%, on average.
Factors to Note
AEP’s service territories observed mixed weather conditions in the fourth quarter. While some parts of its service areas witnessed warmer-than-normal temperatures, other parts observed below-normal weather patterns. Such weather conditions can be expected to have had a moderate impact on American Electric's top line in the fourth quarter.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. price-eps-surprise | American Electric Power Company, Inc. Quote
Other factors like increased retail load, transmission revenues as well as positive rate changes in Texas and Ohio must have also aided AEP’s quarterly results.
Benefits from favorable investments in the prior quarters, along with solid sales expectations, are likely to have bolstered the company’s bottom-line performance amid adverse impacts of higher depreciation and interest expenses.
Q4 Expectations
The Zacks Consensus Estimate for AEP’s fourth-quarter revenues is pegged at $5.22 billion, indicating year-over-year growth of 6.9%.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.27 per share, implying an increase of 21% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Electric this time around. 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 -0.59%. 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 #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some Utility players with the right combination of elements to come up with an earnings beat this reporting cycle.
Sempra Energy (SRE - Free Report) has an Earnings ESP of +0.29% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 9.03%.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales is pegged at $4.03 billion, indicating growth of 16.7% from that recorded in the prior-year quarter. The consensus mark for earnings is pinned at $1.13 per share.
AES Corp (AES - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank #3 at present. The company delivered an earnings surprise of 9.09% in the last reported quarter.
The Zacks Consensus Estimate for AES’ fourth-quarter sales is pegged at $3.10 billion, indicating growth of 1.3% from that recorded in the prior-year quarter. The consensus mark for earnings is pinned at 69 cents per share, implying an improvement of 40.8% from the prior-year quarter’s reported figure.
Consolidated Water (CWCO - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #2 at present. The company delivered a four-quarter average earnings surprise of 61.56%.
The Zacks Consensus Estimate for CWCO’s fourth-quarter sales is pegged at $45 million. The consensus mark for earnings is pinned at 45 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.