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) Posts In-Line Q4 Earnings, Sales Miss
Read MoreHide Full Article
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2018 operating earnings per share (EPS) of 72 cents, in line with the Zacks Consensus Estimate.
The bottom line declined 15.3% from 85 cents per share in the year-ago quarter.
For 2018, American Electric’s earnings were $3.95 per share, up from $3.68 in the year-ago period. The full-year earnings figure also came in line with the Zacks Consensus Estimate of $3.95.
Total Revenues
American Electric’s fourth-quarter revenues of $3.8 billion were in line with the top line figure in the year-ago quarter. The reported figure however missed the Zacks Consensus Estimate of $3.96 billion by 4.2%.
In 2018, total revenues increased 5% year over year from $15.43 billion to $16.20 billion. Revenues also surpassed the Zacks Consensus Estimate of $15.81 billion by 2.46%.
Quarterly Highlights
Operating expenses in the reported quarter were $1,912.8 million compared with $1,725 million a year ago.
Operating income in the quarter was $583.1 million, down 27.3% from $802.4 million in the year-ago quarter.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $130.5 million from $179.4 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $132.1 million in the quarter, up from $123.9 million a year ago.
AEP Transmission Holdco: This segment generated operating income of $92.1 million, up from $78.5 million recorded in the fourth quarter of 2017.
Generation and Marketing: Operating earnings were $35.1 million, up from $24.5 million in the year-ago quarter.
Corporate & Other: Operating losses were $34.9 million, against the operating profit of $13.8 million registered in the year-ago quarter.
Financial Update
As of Dec 31, 2018, American Electric had cash and cash equivalents of $234.1 million compared with $214.6 million as of Dec 31, 2017.
Long-term debt was $21.65 billion as of Dec 31, 2018, compared with $19.42 billion as of Dec 31, 2017.
Cash flow from operations was $5,223.2 million at the end of 2018 compared with $4,270.4 million at the end of 2017.
2019 Guidance
American Electric has reaffirmed its 2019 operating earnings guidance in the range of $4.00–$4.20. The company also reaffirms 5-7% operating earnings growth rate for 2019.
Zacks Rank
American Electric currently carries a Zacks Rank #4 (Sell).
CenterPoint Energy, Inc. (CNP - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 28. The company carries a Zacks Rank #2 (Buy).
NextEra Energy (NEE - Free Report) is scheduled to report fourth-quarter 2018 results on Jan 25. The company carries a Zacks Rank #3 (Hold).
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) Posts In-Line Q4 Earnings, Sales Miss
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2018 operating earnings per share (EPS) of 72 cents, in line with the Zacks Consensus Estimate.
The bottom line declined 15.3% from 85 cents per share in the year-ago quarter.
For 2018, American Electric’s earnings were $3.95 per share, up from $3.68 in the year-ago period. The full-year earnings figure also came in line with the Zacks Consensus Estimate of $3.95.
Total Revenues
American Electric’s fourth-quarter revenues of $3.8 billion were in line with the top line figure in the year-ago quarter. The reported figure however missed the Zacks Consensus Estimate of $3.96 billion by 4.2%.
In 2018, total revenues increased 5% year over year from $15.43 billion to $16.20 billion. Revenues also surpassed the Zacks Consensus Estimate of $15.81 billion by 2.46%.
Quarterly Highlights
Operating expenses in the reported quarter were $1,912.8 million compared with $1,725 million a year ago.
Operating income in the quarter was $583.1 million, down 27.3% from $802.4 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
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $130.5 million from $179.4 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $132.1 million in the quarter, up from $123.9 million a year ago.
AEP Transmission Holdco: This segment generated operating income of $92.1 million, up from $78.5 million recorded in the fourth quarter of 2017.
Generation and Marketing: Operating earnings were $35.1 million, up from $24.5 million in the year-ago quarter.
Corporate & Other: Operating losses were $34.9 million, against the operating profit of $13.8 million registered in the year-ago quarter.
Financial Update
As of Dec 31, 2018, American Electric had cash and cash equivalents of $234.1 million compared with $214.6 million as of Dec 31, 2017.
Long-term debt was $21.65 billion as of Dec 31, 2018, compared with $19.42 billion as of Dec 31, 2017.
Cash flow from operations was $5,223.2 million at the end of 2018 compared with $4,270.4 million at the end of 2017.
2019 Guidance
American Electric has reaffirmed its 2019 operating earnings guidance in the range of $4.00–$4.20. The company also reaffirms 5-7% operating earnings growth rate for 2019.
Zacks Rank
American Electric currently carries a Zacks Rank #4 (Sell).
Upcoming Sector Releases
Ameren Corporation (AEE - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 14. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CenterPoint Energy, Inc. (CNP - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 28. The company carries a Zacks Rank #2 (Buy).
NextEra Energy (NEE - Free Report) is scheduled to report fourth-quarter 2018 results on Jan 25. The company carries a Zacks Rank #3 (Hold).
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 >>