We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is American Electric (AEP) Poised to Beat in Q2 Earnings?
Read MoreHide Full Article
American Electric Power Company, Inc. (AEP - Free Report) is set to release second-quarter 2018 results on Jul 25, before the market opens. Last quarter, this electric utility company reported a negative earnings surprise of 3.03%.
Let’s see how things are shaping up prior to this announcement.
Favorable Factors Under Consideration
During first-quarter 2018 earnings call, American Electric announced its expectation for rate case outcomes from the commissions of the states — Oklahoma, Arkansas, Louisiana and Texas — in the months of May and June 2018. Favorable outcomes from these rate cases are likely to boost the company’s second-quarter revenues. Meanwhile, the company has already witnessed favorable outcomes from its rate case in Michigan and Kentucky. Consequently, we may expect to see these positive outcomes to have a favorable impact on American Electric’s top line in the upcoming quarterly results.
In the first quarter of 2018, income growth within the company’s service territory was 0.7% higher than the United States, while the unemployment rates were the lowest since 2000. Such steady economic developments hint at an improved purchasing power along with possible residential sales growth for American Electric in the second quarter.
In line with this, the Zacks Consensus Estimate for American Electric’s second-quarter revenues pegged at $3.83 billion reflects an annual rise of 6.3%.
On the bottom-line front, favorable rate case outcomes along with lower tax rates are expected to boost American Electric’s second-quarter earnings. Evidently, the Zacks Consensus Estimate for the company’s second-quarter earnings pegged at 84 cents reflects a 12% annual improvement.
American Electric Power Company, Inc. Price and EPS Surprise
Our proven model shows earnings beat for American Electric this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is perfectly the case here as you will see below.
Earnings ESP: American Electric has an Earnings ESP of +2.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Electric carries a Zacks Rank #3, which when combined with a positive ESP makes us reasonably confident of an earnings beat.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few operators in the Utility space that you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +6.01% and a Zacks Rank #2. The company is scheduled to report second-quarter results on Aug 3.
AES Corp. (AES - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #3. The company is scheduled to report second-quarter results on Aug 7.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Is American Electric (AEP) Poised to Beat in Q2 Earnings?
American Electric Power Company, Inc. (AEP - Free Report) is set to release second-quarter 2018 results on Jul 25, before the market opens. Last quarter, this electric utility company reported a negative earnings surprise of 3.03%.
Let’s see how things are shaping up prior to this announcement.
Favorable Factors Under Consideration
During first-quarter 2018 earnings call, American Electric announced its expectation for rate case outcomes from the commissions of the states — Oklahoma, Arkansas, Louisiana and Texas — in the months of May and June 2018. Favorable outcomes from these rate cases are likely to boost the company’s second-quarter revenues. Meanwhile, the company has already witnessed favorable outcomes from its rate case in Michigan and Kentucky. Consequently, we may expect to see these positive outcomes to have a favorable impact on American Electric’s top line in the upcoming quarterly results.
In the first quarter of 2018, income growth within the company’s service territory was 0.7% higher than the United States, while the unemployment rates were the lowest since 2000. Such steady economic developments hint at an improved purchasing power along with possible residential sales growth for American Electric in the second quarter.
In line with this, the Zacks Consensus Estimate for American Electric’s second-quarter revenues pegged at $3.83 billion reflects an annual rise of 6.3%.
On the bottom-line front, favorable rate case outcomes along with lower tax rates are expected to boost American Electric’s second-quarter earnings. Evidently, the Zacks Consensus Estimate for the company’s second-quarter earnings pegged at 84 cents reflects a 12% annual improvement.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. Price and EPS Surprise | American Electric Power Company, Inc. Quote
Earnings Whispers
Our proven model shows earnings beat for American Electric this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is perfectly the case here as you will see below.
Earnings ESP: American Electric has an Earnings ESP of +2.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Electric carries a Zacks Rank #3, which when combined with a positive ESP makes us reasonably confident of an earnings beat.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few operators in the Utility space that you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:
CMS Energy (CMS - Free Report) has an Earnings ESP of +11.26% and a Zacks Rank #2. The company is scheduled to report second-quarter results on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +6.01% and a Zacks Rank #2. The company is scheduled to report second-quarter results on Aug 3.
AES Corp. (AES - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #3. The company is scheduled to report second-quarter results on Aug 7.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>