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American Electric (AEP) Q3 Earnings Top Estimates, Sales Up Y/Y

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American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating earnings per share (EPS) of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved by 13.3% from $1.43 per share in the year-ago quarter.

The company reported GAAP earnings of $1.33 per share compared with the year-ago quarter’s $1.59.

Total Revenues

American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%.

The reported figure also improved by 21.3% from the year-ago quarter’s $4,522.6 million.

Segmental Performance

Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $499.8 million from $437.7 million in the year-ago period.

Transmission & Distribution Utilities: Adjusted earnings were $165.5 million, up from $155.9 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted earnings of $170.5 million, up from $166.8 million in the third quarter of 2021.

Generation and Marketing: Adjusted earnings were $70 million, up from $21.4 million in the year-ago quarter.

Corp & Other: The loss for the reported quarter was $74.8 million compared with a loss of $65.1 million in the year-ago period.

Quarterly Highlights

Total expenses in the third quarter were $2,256.9 million, up 8.8% from the year-ago period.

Interest expenses were $360.7 million, up 18.8% year over year $303.7

Financial Update

As of Sep 30, 2022, AEP had cash and cash equivalents of $522.2 million compared with $403.4 million on Dec 31, 2021.

The long-term debt was $33.65 billion as of Sep 30, 2022 compared with $31.30 billion on Dec 31, 2021.

Cash flow from operations for the nine months ended Sep 30, 2022 was $4,733.2 million compared with $2,973 million in the year-ago period.

Guidance

American Electric reiterated the 2022 operating earnings expectation in the range of $4.97-$5.07 per share. The Zacks Consensus Estimate for 2022 earnings is pegged at $5.02 per share, in line with the midpoint of the guidance range.

Zacks Rank

American Electric currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Another Recent Release

FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.

FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.

Upcoming Releases

NextEra Energy (NEE - Free Report) is slated to report third-quarter 2022 earnings on Oct 28 before market open. The Zacks Consensus Estimate for third-quarter EPS is pegged at 79 cents.

NextEra Energy’s long-term earnings growth is currently pegged at 9.7%. The Zacks Consensus Estimate for NEE’s 2022 earnings implies year-over-year growth of 13.3%.

WEC Energy Group (WEC - Free Report) is scheduled to report third-quarter 2022 earnings on Nov 1 before market open. It has an Earnings ESP of +4.41% and a Zacks Rank #3. The Zacks Consensus Estimate for WEC Energy’s third-quarter earnings is pegged at 86 cents per share, suggesting a decline of 6.5% from the year-ago quarter.

The Zacks Consensus Estimate for WEC’s third-quarter sales is pegged at $1.83 billion, indicating growth of 5% from the prior-year reported figure.

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