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American Electric (AEP) Tops Q4 Earnings Estimates, Keeps View

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American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2017 operating earnings per share (EPS) of 85 cents, exceeding the Zacks Consensus Estimate of 81 cents by 4.9%.

The bottom line also improved 4.9% from 67 cents per share reported a year ago.

For 2017, American Electric Power’s earnings were $3.68 per share, down from $3.94 from the year-ago period.

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 surpassed the Zacks Consensus Estimate of $3.5 billion by 8.8%.

In 2017, total revenues decreased 6.5% year over year from $16.4 billion to $15.4 billion.

Quarterly Highlights

Operating expenses in the reported quarter were $1,713.7 million compared with $1,851.7 million a year ago.

Operating income in the quarter was $420.1 million, up 27.1% from $330.4 million a year ago.

Segmental Performance

Vertically Integrated Utility Operations: Operating earnings in the quarter rose to $179.4 million from $150.6 million a year ago.

Transmission & Distribution Utilities: Operating earnings were $123.9 million in the quarter, up from $81.5 million a year ago.

AEP Transmission Holdco: This segment generated an operating income of $78.5 million, up from $58.8 million recorded in the fourth quarter of 2016.

Generation and Marketing: Operating earnings were $24.5 million, down from $47.8 million in the year-ago quarter.

Corporate & Other: Operating earnings were $13.8 million, compared to operating loss of $8.3 million.

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 Dec 31, 2017, American Electric had $412.6 million in cash and cash equivalents compared with $399.7 million as of Dec 31, 2016.

Long-term debt was $19.03 billion as of Dec 31, 2017, compared with $17.38 billion as of Dec 31, 2016.

Cash flow from operations was $4,284 million at the end of 2017 compared with $4,521.8 million at the end of 2016.

Guidance

American Electric has reaffirmed its 2018 operating earnings guidance in the range of $3.75-$3.95.

Upcoming Peer Releases

CenterPoint Energy, Inc. (CNP - Free Report) is scheduled to report fourth-quarter 2017 results on Feb 22. The company carries a Zacks Rank #2.

Exelon Corporation (EXC - Free Report) is scheduled to report fourth-quarter 2017 results on Feb 7. The company carries a Zacks Rank #2.

Edison International (EIX - Free Report) is scheduled to report fourth-quarter 2017 results on Feb 20. The company carries a Zacks Rank #3.

Zacks Rank

American Electric carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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