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American Electric's Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of $1.85, which beat the Zacks Consensus Estimate of $1.78 by 3.9%. The bottom line also improved 4.5% from earnings of $1.77 per share recorded in the year-ago quarter.

The company reported GAAP earnings of $1.80 per share compared with the year-ago quarter’s figure of $1.83.

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American Electric’s Total Revenues

Operating revenues of $5.43 billion rose 2.4% from the year-ago quarter’s level of $5.30 billion. It also surpassed the Zacks Consensus Estimate of $5.39 billion.

The company reported GAAP revenues of $5.42 billion, which improved 1.5% year over year.

AEP’s Segmental Performance

Vertically Integrated Utility Operations: Adjusted earnings increased to $572.4 million from $520 million in the year-ago period.

Transmission & Distribution Utilities: Adjusted earnings totaled $245.2 million, up from $206 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted earnings of $214.7 million, up from $202.9 million in the year-ago quarter.

Generation and Marketing: Adjusted earnings amounted to $99.2 million, up from $92.8 million in the year-ago quarter.

All Other: The segment reported a loss of $146.1 million, wider than the loss of $97.9 million in the year-ago period.

Highlights of AEP’s Result

Electricity sales volume from Vertically Integrated Utilities dropped 1% year over year, while Transmission & Distribution Utilities’ electricity sales volume improved 4.1%.

Total expenses were $4.05 billion, up 1.5% from the year-ago level.

Interest expenses amounted to $498.8 million, up 6.1% from the year-ago quarter’s figure.

AEP’s Guidance

American Electric has updated its 2024 operating earnings guidance. It now expects to generate earnings in the band of $5.58-$5.68 per share, narrower than its previous guidance of $5.53-$5.73. The Zacks Consensus Estimate for earnings is pegged at $5.60 per share, which lies below the mid-point of the company’s new projected range.

AEP’s 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

Edison International (EIX - Free Report) reported third-quarter adjusted earnings of $1.51 per share, which surpassed the Zacks Consensus Estimate of $1.39 by 8.6%. The bottom line also increased 9.4% from $1.38 in the year-ago quarter.

EIX's operating revenues totaled $5.20 billion, which beat the consensus estimate of $4.76 billion by 9.4%. The top line also increased 10.6% from the year-ago quarter’s figure of $4.70 billion.

FirstEnergy (FE - Free Report) reported third-quarter 2024 operating earnings of 85 cents per share, which lagged the Zacks Consensus Estimate of 95 cents by 6.6%. The bottom line decreased 3.4% from the year-ago figure of 88 cents per share.

FE’s operating revenues totaled $3.73 billion, which missed the consensus estimate of $3.98 billion by 6.4%. The top line, however, increased 6.9% from $3.48 billion reported in the year-ago quarter.

CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter adjusted earnings of 31 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 13.9%. The bottom line also deteriorated 22.5% from the year-ago figure.

CNP’s revenues totaled $1.86 billion, which missed the consensus estimate of $1.88 billion by 1.2%. The top line was also 0.2% lower than the year-ago figure.

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