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American Electric (AEP) Q2 Earnings Beat, Revenues Down Y/Y

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American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2019 adjusted earnings per share (EPS) of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.

However, the bottom line fell 1% from $1.01 per share in the year-ago quarter.

The company reported GAAP earnings of 93 cents per share compared with the year-ago quarter’s $1.07.

Total Revenues

American Electric’s second-quarter revenues of $3.60 billion missed the Zacks Consensus Estimate of $4.15 billion by 13.6%. The reported figure also declined 10.2% from the year-ago quarter’s revenues of $4 billion.

Quarterly Highlights

Operating expenses in the reported quarter were $1,861.9 million compared with $1,912.6 million a year ago.

Operating income in the quarter was $585.5 million, down 21% from $741.4 million in the year-ago quarter.

Segmental Performance

Vertically Integrated Utility Operations: Operating earnings in the quarter decreased to $186.9 million from $276.8 million a year ago.

Transmission & Distribution Utilities: Operating earnings were $131.3 million in the quarter, up from $114 million a year ago.

AEP Transmission Holdco: This segment generated operating income of $154.6 million, up from $101.1 million reported in the second quarter of 2018.

Generation and Marketing: Operating earnings were $27.4 million, up from $26.5 million in the year-ago quarter.

Corporate & Other: Operating losses were $6.6 million compared with operating losses of $20.1 million in the year-ago quarter.

American Electric Power Company, Inc. Price, Consensus and EPS Surprise

Financial Update

As of Jun 30, 2019, American Electric had cash and cash equivalents of $210.5 million compared with $234.1 million as of Dec 31, 2018.

Long-term debt was $24.17 billion as of Jun 30, 2019, compared with $21.65 billion as of Dec 31, 2018.

Cash flow from operations was $1,800.8 million during the first half of 2019 compared with $2,006.8 million in the first half of 2018.

2019 Guidance

American Electric has reaffirmed its 2019 operating earnings guidance of $4.00-$4.20 per share.

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.

Upcoming Utility Releases

Dominion Energy (D - Free Report) is scheduled to report second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at 79 cents.

Exelon Corp. (EXC - Free Report) is slated to report second-quarter 2019 results on Aug 1. The Zacks Consensus Estimate for earnings in the quarter is pegged at 63 cents.

A Recent Utility Release

NextEra Energy (NEE - Free Report) reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, earnings were up 12.9% on a year-over-year basis.

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