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American Electric (AEP) Q1 Earnings Lag, Revenues Rise Y/Y
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American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2024 adjusted earnings per share (EPS) of $1.27, which missed the Zacks Consensus Estimate of $1.30 by 2.3%. However, the bottom line improved 14.4% from $1.11 recorded in the year-ago quarter.
The company reported GAAP earnings of $1.91 per share compared with the year-ago quarter’s figure of 77 cents.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric’s first-quarter operating revenues of $5.03 billion lagged the Zacks Consensus Estimate of $5.29 billion by 5.4%. However, the reported figure rose 7.1% from the year-ago quarter’s level of $4.69 billion.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $300.3 million from $265.2 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings totaled $150.3 million, up from $125.7 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $208.7 million, up from $181.5 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings amounted to $65.4 million, up from $45.2 million in the year-ago quarter.
All Other: The segment reported a loss of $54.3 million compared with a loss of $46 million in the year-ago period.
Highlights of the Result
In the reported quarter, electricity sales volume from Vertically Integrated Utilities increased 5.2% year over year, while electric sales volume from Transmission & Distribution Utilities improved 8.4%.
Total expenses in the first quarter of 2024 were $3.85 billion, down 3.3% from the year-ago level.
Interest expenses amounted to $435.6 million, up 4.8% from $415.7 million in the year-ago quarter.
Guidance
American Electric reiterated its 2024 operating earnings guidance. It still expects to generate earnings in the band of $5.53-$5.73 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.54 per share, which lies near the lower end of the company’s projected range.
CMS Energy Corporation (CMS - Free Report) reported first-quarter 2024 adjusted EPS of 97 cents, which beat the Zacks Consensus Estimate of 92 cents by 5.4%. The bottom line increased 38.6% from 70 cents reported in the prior-year quarter.
For the first quarter, CMS’ operating revenues totaled $2.18 billion, which lagged the Zacks Consensus Estimate of $2.35 billion by 7.3%. The top line also decreased 4.7% on a year-over-year basis.
NextEra Energy (NEE - Free Report) reported first-quarter 2024 operating earnings of 91 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 13.8%. Also, the bottom line improved 8.3% from the year-ago quarter’s figure of 84 cents.
Fourth-quarter revenues of $5.73 billion missed the Zacks Consensus Estimate of $6.46 billion by 11.4%. The figure also declined 14.7% from the year-ago quarter’s figure.
Avangrid, Inc. (AGR - Free Report) reported first-quarter 2024 adjusted EPS of 88 cents, which beat the Zacks Consensus Estimate of 71 cents by 23.9%. The bottom line also increased 37.5% from 64 cents reported in the prior-year quarter.
Operating revenues totaled $2.42 billion, which lagged the Zacks Consensus Estimate of $2.57 billion by 6%. The top line also decreased 2% from $2.47 billion reported in the year-ago quarter.
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American Electric (AEP) Q1 Earnings Lag, Revenues Rise Y/Y
American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2024 adjusted earnings per share (EPS) of $1.27, which missed the Zacks Consensus Estimate of $1.30 by 2.3%. However, the bottom line improved 14.4% from $1.11 recorded in the year-ago quarter.
The company reported GAAP earnings of $1.91 per share compared with the year-ago quarter’s figure of 77 cents.
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
Total Revenues
American Electric’s first-quarter operating revenues of $5.03 billion lagged the Zacks Consensus Estimate of $5.29 billion by 5.4%. However, the reported figure rose 7.1% from the year-ago quarter’s level of $4.69 billion.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $300.3 million from $265.2 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings totaled $150.3 million, up from $125.7 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $208.7 million, up from $181.5 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings amounted to $65.4 million, up from $45.2 million in the year-ago quarter.
All Other: The segment reported a loss of $54.3 million compared with a loss of $46 million in the year-ago period.
Highlights of the Result
In the reported quarter, electricity sales volume from Vertically Integrated Utilities increased 5.2% year over year, while electric sales volume from Transmission & Distribution Utilities improved 8.4%.
Total expenses in the first quarter of 2024 were $3.85 billion, down 3.3% from the year-ago level.
Interest expenses amounted to $435.6 million, up 4.8% from $415.7 million in the year-ago quarter.
Guidance
American Electric reiterated its 2024 operating earnings guidance. It still expects to generate earnings in the band of $5.53-$5.73 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.54 per share, which lies near the lower end of the company’s projected range.
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
CMS Energy Corporation (CMS - Free Report) reported first-quarter 2024 adjusted EPS of 97 cents, which beat the Zacks Consensus Estimate of 92 cents by 5.4%. The bottom line increased 38.6% from 70 cents reported in the prior-year quarter.
For the first quarter, CMS’ operating revenues totaled $2.18 billion, which lagged the Zacks Consensus Estimate of $2.35 billion by 7.3%. The top line also decreased 4.7% on a year-over-year basis.
NextEra Energy (NEE - Free Report) reported first-quarter 2024 operating earnings of 91 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 13.8%. Also, the bottom line improved 8.3% from the year-ago quarter’s figure of 84 cents.
Fourth-quarter revenues of $5.73 billion missed the Zacks Consensus Estimate of $6.46 billion by 11.4%. The figure also declined 14.7% from the year-ago quarter’s figure.
Avangrid, Inc. (AGR - Free Report) reported first-quarter 2024 adjusted EPS of 88 cents, which beat the Zacks Consensus Estimate of 71 cents by 23.9%. The bottom line also increased 37.5% from 64 cents reported in the prior-year quarter.
Operating revenues totaled $2.42 billion, which lagged the Zacks Consensus Estimate of $2.57 billion by 6%. The top line also decreased 2% from $2.47 billion reported in the year-ago quarter.