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) Q1 Earnings & Sales Beat Estimates
Read MoreHide Full Article
American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.19 by 2.5%. The bottom line also improved 6% from $1.15 per share in the year-ago quarter.
The company reported GAAP earnings of $1.41 per share compared with the year-ago quarter’s $1.16. The difference between GAAP and operating earnings for the reported quarter was primarily due to the mark-to-market impact of economic hedging activities.
Total Revenues
American Electric’s first-quarter revenues of $4,592.6 million beat the Zacks Consensus Estimate of $4,496 million by 2.1%.
The reported figure also improved 7.3% from the year-ago quarter’s $4,281.1 million.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $298.2 million from $270.4 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $152.8 million, up from $114.4 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $173.1 million, up from $172 million in first-quarter 2021.
Generation and Marketing: Adjusted earnings were $14.7 million, down from $32.1 million in the year-ago quarter.
Corp & Other: Loss for the reported quarter was $22.4 million compared with a loss of $18.4 million in the year-ago period.
Quarterly Highlights
Total expenses for the first quarter were $2,100.4 million, up 9.9% from the year-ago period.
For the reported quarter, sales volumes to residential, industrial and commercial customers improved 0.8%, 5.6% and 4.2% year over year, respectively.
Interest expenses were $313.4 million, up 8% year over year.
Financial Update
As of Mar 31, 2022, American Electric had cash and cash equivalents of $675.6 million compared with $403.4 million on Dec 31, 2021.
Long-term debt was $30.9 billion as of Mar 31, 2022 compared with $31.3 billion on Dec 31, 2021.
Cash flow from operations for the first quarter was $1,622.2 million against $117.2 million cash used in operations in the year-ago period.
Guidance
American Electric reiterated 2022 operating earnings expectation in the range of $4.87-$5.07 per share. The Zacks Consensus Estimate for 2022 earnings is pegged at $4.99 per share, a tad higher than the mid-point of the guidance range.
American Electric plans to invest $38 billion in the 2022-2026 time frame, out of which 65% will be utilized for strengthening transmission and distribution lines. Also, 21% of the expenditure will be directed to strengthen renewable operations.
NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 8.8%. The Zacks Consensus Estimate for 2022 earnings per share of $2.81 indicates year-over-year growth of 10.2%.
FirstEnergy Corporation (FE - Free Report) came up with first-quarter 2022 operating earnings per share of 60 cents, which missed the Zacks Consensus Estimate of 62 cents by 3.2%.
FirstEnergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for second-quarter 2022 earnings per share of 60 cents suggests year-over-year growth of 1.7%.
Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%.
Entergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for 2022 earnings per share of $6.34 implies year-over-year growth of 5.3%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
American Electric (AEP) Q1 Earnings & Sales Beat Estimates
American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.19 by 2.5%. The bottom line also improved 6% from $1.15 per share in the year-ago quarter.
The company reported GAAP earnings of $1.41 per share compared with the year-ago quarter’s $1.16. The difference between GAAP and operating earnings for the reported quarter was primarily due to the mark-to-market impact of economic hedging activities.
Total Revenues
American Electric’s first-quarter revenues of $4,592.6 million beat the Zacks Consensus Estimate of $4,496 million by 2.1%.
The reported figure also improved 7.3% from the year-ago quarter’s $4,281.1 million.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $298.2 million from $270.4 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings were $152.8 million, up from $114.4 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $173.1 million, up from $172 million in first-quarter 2021.
Generation and Marketing: Adjusted earnings were $14.7 million, down from $32.1 million in the year-ago quarter.
Corp & Other: Loss for the reported quarter was $22.4 million compared with a loss of $18.4 million in the year-ago period.
Quarterly Highlights
Total expenses for the first quarter were $2,100.4 million, up 9.9% from the year-ago period.
For the reported quarter, sales volumes to residential, industrial and commercial customers improved 0.8%, 5.6% and 4.2% year over year, respectively.
Interest expenses were $313.4 million, up 8% year over year.
Financial Update
As of Mar 31, 2022, American Electric had cash and cash equivalents of $675.6 million compared with $403.4 million on Dec 31, 2021.
Long-term debt was $30.9 billion as of Mar 31, 2022 compared with $31.3 billion on Dec 31, 2021.
Cash flow from operations for the first quarter was $1,622.2 million against $117.2 million cash used in operations in the year-ago period.
Guidance
American Electric reiterated 2022 operating earnings expectation in the range of $4.87-$5.07 per share. The Zacks Consensus Estimate for 2022 earnings is pegged at $4.99 per share, a tad higher than the mid-point of the guidance range.
American Electric plans to invest $38 billion in the 2022-2026 time frame, out of which 65% will be utilized for strengthening transmission and distribution lines. Also, 21% of the expenditure will be directed to strengthen renewable operations.
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.
Recent Releases
NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 8.8%. The Zacks Consensus Estimate for 2022 earnings per share of $2.81 indicates year-over-year growth of 10.2%.
FirstEnergy Corporation (FE - Free Report) came up with first-quarter 2022 operating earnings per share of 60 cents, which missed the Zacks Consensus Estimate of 62 cents by 3.2%.
FirstEnergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for second-quarter 2022 earnings per share of 60 cents suggests year-over-year growth of 1.7%.
Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%.
Entergy’s long-term earnings growth is pegged at 6.36%. The Zacks Consensus Estimate for 2022 earnings per share of $6.34 implies year-over-year growth of 5.3%.