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What's in Store for American Electric Power in Q3 Earnings?

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American Electric Power Company, Inc (AEP - Free Report) is slated to release third-quarter 2024 results on Nov. 6 before the market opens.

See the Zacks Earnings Calendar to stay ahead of market-making news.

In the last reported quarter, the company delivered an earnings surprise of 1.63%. However, American Electric has a trailing four-quarter average negative earnings surprise of 0.38%.

Factors to Note Ahead of AEP’s Q3 Earnings
 

Most of the AEP’s service territories observed warmer-than-normal weather conditions in the third quarter. Such a weather pattern is expected to have boosted electricity demand from AEP’s customers for cooling purposes this summer. This is likely to have contributed to American Electric's top line in the third quarter revenues.
 

Other factors, like favorable rate revisions, solid transmission revenues and increased customer volumes, must have also aided AEP’s quarterly results.

Adverse weather patterns, including heavy rainfall, flooding and a few tornadoes, along with Hurricane Beryl and windstorm Derecho, affected some parts of AEP’s service territories during the third quarter. This might have disrupted the company’s services in those areas, which is likely to have resulted in outages for its customers. AEP’s overall revenues might have been impacted due to these outages.

The Zacks Consensus Estimate for American Electric’s third-quarter revenues is pegged at $5.39 billion. This suggests 1.8% growth from the year-ago quarter.

Higher interest and depreciation expenses might have hurt the company’s bottom-line performance.

Nevertheless, benefits from favorable investments in the prior quarters, higher normalized retail sales and solid revenue expectations might have boosted American Electric’s overall earnings.

The Zacks Consensus Estimate for AEP’s third-quarter earnings is pegged at $1.78 per share. This indicates an increase of 0.6% from the prior-year reported figure.

The sale of AEP OnSite Partners is expected to have been completed in the third quarter of 2024. The net proceeds worth approximately $315 million from this transaction are likely to have been added to AEP’s third-quarter cash balance.

What the Zacks Model Unveils for AEP
 

Our proven model predicts 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 odds of an earnings beat, which is the case here, as you will see below.

AEP’s Earnings ESP: AEP has an Earnings ESP of +0.94%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AEP’s Zacks Rank: Currently, American Electric carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider
 

Below, we have mentioned the following players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases.

Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to report its third-quarter results on Nov. 4, before the market opens. It has an Earnings ESP of +0.07% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for PEG’s third-quarter sales is pegged at $2.48 billion, which indicates a 0.9% improvement from the year-ago quarter’s figure. The Zacks Consensus Estimate for third-quarter earnings is pinned at 91 cents per share, which indicates year-over-year growth of 7.1%.

Eversource Energy (ES - Free Report) is slated to report its third-quarter 2024 results on Nov. 5 after market close. It has an Earnings ESP of +7.05% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for ES’ third-quarter earnings stands at $1.04 per share, which indicates year-over-year growth of 7.2%. The Zacks Consensus Estimate for third-quarter sales is pegged at $3.05 billion, which implies a 9.3% rise from that reported in the prior-year quarter.

PG&E Corporation (PCG - Free Report) is scheduled to report its third-quarter results on Nov. 7, before the market opens. It has an Earnings ESP of +6.35% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for PCG’s third sales is pegged at $6.67 billion, which indicates a 13.3% improvement from the year-ago quarter’s figure. The consensus estimate for third-quarter earnings is pinned at 32 cents per share, which indicates year-over-year growth of 33.3%.

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