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What's in Store for American Electric (AEP) in Q2 Earnings?
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American Electric Power Company, Inc(AEP - Free Report) is slated to release its second-quarter 2022 results on Jul 27 before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.52%. American Electric has a trailing four-quarter earnings surprise of 2.40%, on average.
Factors to Note
During most of the second quarter, AEP’s service territories observed mixed weather patterns. While some parts observed warmer-than-normal temperatures along with extreme drought conditions, other parts had cooler weather. Additionally, some parts of its service territories experienced significant precipitation levels, resulting in wet weather conditions.
Also, some parts of its service territories experienced severe weather conditions, along with tornados, which may have disrupted the smooth flow of electricity to its customers. Such fluctuating weather patterns are likely to have caused a mixed impact on the company’s overall revenue performance in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $4.19 billion, suggesting growth of 9.6% from the year-ago quarter.
As mentioned above, American Electric’s service territories witnessed severe weather patterns, accompanied by wind gusts and tornados, in the second quarter, which may have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repairing. This, in turn, is likely to have weighed on its bottom line in the to-be-reported quarter.
Also, higher depreciation, operating and maintenance expenses might have dampened the company’s earnings in the second quarter.
The Zacks Consensus Estimate for second-quarter earningsis pegged at $1.13 per share, indicating a decline of 4.2% from the prior-year reported figure.
American Electric Power Company, Inc. Price and EPS Surprise
Our proven model predicts an earnings beat for American Electric this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: The company’s Earnings ESP is +6.77%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three other Utilityplayers you may want to consider as these also have the right combination of elements to post an earnings beat this season:
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #2.
CenterPoint boasts a long-term earnings growth rate of 3.9%. The Zacks Consensus Estimate for CNP’s second-quarter sales and earnings is pegged at $1.73 billion and 27 cents per share, respectively.
DTE Energy(DTE - Free Report) has an Earnings ESP of +5.17% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings, pegged at $1.11 per share, implies a decline of 34.7% from the prior-year quarter’s tally.
DTE Energy boasts a long-term earnings growth rate of 6%. DTE has a four-quarter earnings surprise of 8.97%.
Consolidated Edison (ED - Free Report) has an Earnings ESP of +7.91% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 54 cents per share, indicating growth of 1.89% from the prior-year reported figure.
Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.13 billion, suggesting growth of 5.4% from the prior-year reported figure.
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What's in Store for American Electric (AEP) in Q2 Earnings?
American Electric Power Company, Inc(AEP - Free Report) is slated to release its second-quarter 2022 results on Jul 27 before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.52%. American Electric has a trailing four-quarter earnings surprise of 2.40%, on average.
Factors to Note
During most of the second quarter, AEP’s service territories observed mixed weather patterns. While some parts observed warmer-than-normal temperatures along with extreme drought conditions, other parts had cooler weather. Additionally, some parts of its service territories experienced significant precipitation levels, resulting in wet weather conditions.
Also, some parts of its service territories experienced severe weather conditions, along with tornados, which may have disrupted the smooth flow of electricity to its customers. Such fluctuating weather patterns are likely to have caused a mixed impact on the company’s overall revenue performance in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $4.19 billion, suggesting growth of 9.6% from the year-ago quarter.
As mentioned above, American Electric’s service territories witnessed severe weather patterns, accompanied by wind gusts and tornados, in the second quarter, which may have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repairing. This, in turn, is likely to have weighed on its bottom line in the to-be-reported quarter.
Also, higher depreciation, operating and maintenance expenses might have dampened the company’s earnings in the second quarter.
The Zacks Consensus Estimate for second-quarter earningsis pegged at $1.13 per share, indicating a decline of 4.2% from the prior-year reported figure.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. price-eps-surprise | American Electric Power Company, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for American Electric this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: The company’s Earnings ESP is +6.77%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AEP carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other Utilityplayers you may want to consider as these also have the right combination of elements to post an earnings beat this season:
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #2.
CenterPoint boasts a long-term earnings growth rate of 3.9%. The Zacks Consensus Estimate for CNP’s second-quarter sales and earnings is pegged at $1.73 billion and 27 cents per share, respectively.
DTE Energy(DTE - Free Report) has an Earnings ESP of +5.17% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings, pegged at $1.11 per share, implies a decline of 34.7% from the prior-year quarter’s tally.
DTE Energy boasts a long-term earnings growth rate of 6%. DTE has a four-quarter earnings surprise of 8.97%.
Consolidated Edison (ED - Free Report) has an Earnings ESP of +7.91% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 54 cents per share, indicating growth of 1.89% from the prior-year reported figure.
Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.13 billion, suggesting growth of 5.4% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.