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.
American Electric (AEP) Q2 Earnings Top on Favorable Weather
Read MoreHide Full Article
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2018 adjusted earnings per share (EPS) of $1.01, beating the Zacks Consensus Estimate of 88 cents per share by 14.8%. The bottom line also surpassed the prior-year earnings of 75 cents by 34.7%.
The company benefited from improving economic conditions in its service territories, favorable weather and the investments made to strengthen its transmission systems.
Including one-time items, the company reported GAAP earnings of $1.07 per share compared with the year-ago quarter’s figure of 76 cents.
American Electric’s second-quarter revenues of $4 billion surpassed the Zacks Consensus Estimate of $3.83 billion by 4.5%. The reported figure was also higher than the year-ago quarter’s revenues of $3.6 billion by 11.1%.
Quarterly Highlights
Operating expenses in the reported quarter were $1,912.6 million compared with $1,649.7 million a year ago.
Operating income in the quarter was $741.4 million, up 0.7% from $736.6 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $276.8 million from $120.8 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $114.0 million in the quarter, up from $111.2 million a year ago.
AEP Transmission Holdco: This segment generated operating income of $101.1 million, down from $128.4 million recorded in the second quarter of 2017.
Generation and Marketing: Operating earnings were $26.5 million, up from $21.8 million recorded in the year-ago quarter.
Corporate & Other: The segment generated operating loss of $20.1 million in the second quarter compared with $11.8 million recorded in the year-ago quarter.
Financial Update
As of Jun 30, 2018, American Electric had $211.2 million in cash and cash equivalents compared with $214.6 million on Dec 31, 2017.
Long-term debt was $19.75 billion as of Jun 30, 2018 compared with $19.42 billion on Dec 31, 2017.
Cash flow from operations was $2,006.8 million in the first six months of 2018 compared with $1,717.0 million in the year-ago period.
Guidance
American Electric reaffirmed 2018 operating earnings guidance in the range of $3.75-$3.95.
Edison International (EIX - Free Report) is scheduled to report second-quarter 2018 results on Jul 26. The Zacks Consensus Estimate is pegged at 83 cents.
CMS Energy Corporation (CMS - Free Report) is scheduled to announce second-quarter 2018 results on Jul 26. The Zacks Consensus Estimate stands at 38 cents.
FirstEnergy Corporation (FE - Free Report) is scheduled to report second-quarter 2018 results on Jul 31. The Zacks Consensus Estimate is pegged at 53 cents.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
American Electric (AEP) Q2 Earnings Top on Favorable Weather
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2018 adjusted earnings per share (EPS) of $1.01, beating the Zacks Consensus Estimate of 88 cents per share by 14.8%. The bottom line also surpassed the prior-year earnings of 75 cents by 34.7%.
The company benefited from improving economic conditions in its service territories, favorable weather and the investments made to strengthen its transmission systems.
Including one-time items, the company reported GAAP earnings of $1.07 per share compared with the year-ago quarter’s figure of 76 cents.
Price, Consensus and EPS Surprise
Price, Consensus and EPS Surprise | Quote
Total Revenues
American Electric’s second-quarter revenues of $4 billion surpassed the Zacks Consensus Estimate of $3.83 billion by 4.5%. The reported figure was also higher than the year-ago quarter’s revenues of $3.6 billion by 11.1%.
Quarterly Highlights
Operating expenses in the reported quarter were $1,912.6 million compared with $1,649.7 million a year ago.
Operating income in the quarter was $741.4 million, up 0.7% from $736.6 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $276.8 million from $120.8 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $114.0 million in the quarter, up from $111.2 million a year ago.
AEP Transmission Holdco: This segment generated operating income of $101.1 million, down from $128.4 million recorded in the second quarter of 2017.
Generation and Marketing: Operating earnings were $26.5 million, up from $21.8 million recorded in the year-ago quarter.
Corporate & Other: The segment generated operating loss of $20.1 million in the second quarter compared with $11.8 million recorded in the year-ago quarter.
Financial Update
As of Jun 30, 2018, American Electric had $211.2 million in cash and cash equivalents compared with $214.6 million on Dec 31, 2017.
Long-term debt was $19.75 billion as of Jun 30, 2018 compared with $19.42 billion on Dec 31, 2017.
Cash flow from operations was $2,006.8 million in the first six months of 2018 compared with $1,717.0 million in the year-ago period.
Guidance
American Electric reaffirmed 2018 operating earnings guidance in the range of $3.75-$3.95.
Zacks Rank
Currently, American Electric carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases From the Same Industry
Edison International (EIX - Free Report) is scheduled to report second-quarter 2018 results on Jul 26. The Zacks Consensus Estimate is pegged at 83 cents.
CMS Energy Corporation (CMS - Free Report) is scheduled to announce second-quarter 2018 results on Jul 26. The Zacks Consensus Estimate stands at 38 cents.
FirstEnergy Corporation (FE - Free Report) is scheduled to report second-quarter 2018 results on Jul 31. The Zacks Consensus Estimate is pegged at 53 cents.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>