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American Electric (AEP) Beats on Q3 Earnings, Hikes EPS View
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American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2018 operating earnings per share (EPS) of $1.25, surpassing the Zacks Consensus Estimate of $1.23 by 1.6%.
The bottom line also improved 13.6% from $1.10 reported a year ago.
The strong earnings performance in the quarter was driven by favorable weather conditions and investments to enhance service support.
Including one-time items, the company reported GAAP earnings of $1.17 per share compared with the year-ago quarter’s figure of $1.11.
Total Revenues
American Electric’s third-quarter revenues of $4.3 billion increased 4.9% from $4.1 billion in the year-ago quarter. The reported figure also surpassed the Zacks Consensus Estimate of $4.26 million by 0.9%.
Quarterly Highlights
Operating expenses in the reported quarter were $2,039.4 million compared with $1,704.1 million a year ago.
Operating income in the quarter was $668.6 million, down 31.4% from $975.1 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased 20.2% to $344.2 million from $286.3 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $145.2 million in the quarter, up 0.8% from $144 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $73.3 million, down 2.9% from $75.5 million recorded in the third quarter of 2017.
Generation and Marketing: Operating earnings were $5.3 million, down 84.3% from $33.7 million in the year-ago quarter.
Corporate & Other: Operating earnings were $9.6 million, up 84.6% from $5.2 million in the year-ago quarter.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
As of Sep 30, 2018, American Electric had $788.3 million in cash and cash equivalents compared with $214.6 million as of Dec 31, 2017.
Long-term debt was $20.89 billion as of Sep 30, 2018, compared with $19.42 billion as of Dec 31, 2017.
Cash flow from operations was $3,932.6 million in the first nine months of 2018 compared with $3,124.2 million in the prior-year period.
Guidance
American Electric has increased and narrowed its 2018 operating earnings guidance to $3.88-$3.98 per share from the previous projection of $3.75-$3.95 per share.
DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%. The reported figure also improved 43.9% from the year-ago quarter’s figure of $1.48.
NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%. Moreover, earnings were up 17.8% on a year-over-year basis.
Upcoming Release
Edison International (EIX - Free Report) is scheduled to report third-quarter 2018 results on Oct 30. The company carries a Zacks Rank #3.
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American Electric (AEP) Beats on Q3 Earnings, Hikes EPS View
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2018 operating earnings per share (EPS) of $1.25, surpassing the Zacks Consensus Estimate of $1.23 by 1.6%.
The bottom line also improved 13.6% from $1.10 reported a year ago.
The strong earnings performance in the quarter was driven by favorable weather conditions and investments to enhance service support.
Including one-time items, the company reported GAAP earnings of $1.17 per share compared with the year-ago quarter’s figure of $1.11.
Total Revenues
American Electric’s third-quarter revenues of $4.3 billion increased 4.9% from $4.1 billion in the year-ago quarter. The reported figure also surpassed the Zacks Consensus Estimate of $4.26 million by 0.9%.
Quarterly Highlights
Operating expenses in the reported quarter were $2,039.4 million compared with $1,704.1 million a year ago.
Operating income in the quarter was $668.6 million, down 31.4% from $975.1 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter increased 20.2% to $344.2 million from $286.3 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $145.2 million in the quarter, up 0.8% from $144 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $73.3 million, down 2.9% from $75.5 million recorded in the third quarter of 2017.
Generation and Marketing: Operating earnings were $5.3 million, down 84.3% from $33.7 million in the year-ago quarter.
Corporate & Other: Operating earnings were $9.6 million, up 84.6% from $5.2 million in the year-ago quarter.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. Price, Consensus and EPS Surprise | American Electric Power Company, Inc. Quote
Financial Update
As of Sep 30, 2018, American Electric had $788.3 million in cash and cash equivalents compared with $214.6 million as of Dec 31, 2017.
Long-term debt was $20.89 billion as of Sep 30, 2018, compared with $19.42 billion as of Dec 31, 2017.
Cash flow from operations was $3,932.6 million in the first nine months of 2018 compared with $3,124.2 million in the prior-year period.
Guidance
American Electric has increased and narrowed its 2018 operating earnings guidance to $3.88-$3.98 per share from the previous projection of $3.75-$3.95 per share.
Zacks Rank
American Electric carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%. The reported figure also improved 43.9% from the year-ago quarter’s figure of $1.48.
NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%. Moreover, earnings were up 17.8% on a year-over-year basis.
Upcoming Release
Edison International (EIX - Free Report) is scheduled to report third-quarter 2018 results on Oct 30. The company carries a Zacks Rank #3.
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>>