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American Electric (AEP) Q4 Earnings Miss, Revenues Fall Y/Y
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American Electric Power Company, Inc. (AEP - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.23, which missed the Zacks Consensus Estimate of $1.27 by 3.1%. The bottom line, however, improved 17.1% from $1.05 recorded in the year-ago quarter.
The company reported GAAP earnings of 64 cents per share compared with the year-ago quarter’s figure of 75 cents.
For 2023, the company generated adjusted EPS of $5.25, up from $5.09 recorded in 2022. The full-year bottom line, however, missed the consensus estimate of $5.27 by 0.4%.
Total Revenues
American Electric’s fourth-quarter operating revenues of $4,600 million lagged the Zacks Consensus Estimate of $5,217 million by 11.8%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,881 million.
For 2023, the company generated revenues of $18.98 billion compared with $19.64 billion in 2022. The full-year top line also missed the consensus estimate of $19.69 billion.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $237.8 million from $208.7 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings totaled $188.6 million, up from $112.6 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $159.3 million, down from $188.1 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings amounted to $103.5 million, up from $81.1 million in the year-ago quarter.
All Other: The segment reported a loss of $42.3 million compared with a loss of $50.4 million in the year-ago period.
Highlights of the Result
In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 4.7% year over year, while Transmission & Distribution Utilities sales volume improved 9.9%.
Total expenses in 2023 were $15.43 billion, down 4.5% from the year-ago level.
Interest expenses amounted to $1.81 billion, up 29.4% from $1.40 billion in the year-ago quarter.
Guidance
American Electric reiterated its 2024 operating earnings guidance. It still expects to generate earnings in the band of $5.53-$5.73 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.55 per share, lower than the midpoint of the company’s projected range.
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.
DTE Energy initiated its 2024 operating EPS projection. The company expects operating EPS in the range of $6.54-$6.83.
Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.
The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.
Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.
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American Electric (AEP) Q4 Earnings Miss, Revenues Fall Y/Y
American Electric Power Company, Inc. (AEP - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.23, which missed the Zacks Consensus Estimate of $1.27 by 3.1%. The bottom line, however, improved 17.1% from $1.05 recorded in the year-ago quarter.
The company reported GAAP earnings of 64 cents per share compared with the year-ago quarter’s figure of 75 cents.
For 2023, the company generated adjusted EPS of $5.25, up from $5.09 recorded in 2022. The full-year bottom line, however, missed the consensus estimate of $5.27 by 0.4%.
Total Revenues
American Electric’s fourth-quarter operating revenues of $4,600 million lagged the Zacks Consensus Estimate of $5,217 million by 11.8%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,881 million.
For 2023, the company generated revenues of $18.98 billion compared with $19.64 billion in 2022. The full-year top line also missed the consensus estimate of $19.69 billion.
Segmental Performance
Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $237.8 million from $208.7 million in the year-ago period.
Transmission & Distribution Utilities: Adjusted earnings totaled $188.6 million, up from $112.6 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated adjusted earnings of $159.3 million, down from $188.1 million in the year-ago quarter.
Generation and Marketing: Adjusted earnings amounted to $103.5 million, up from $81.1 million in the year-ago quarter.
All Other: The segment reported a loss of $42.3 million compared with a loss of $50.4 million in the year-ago period.
Highlights of the Result
In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 4.7% year over year, while Transmission & Distribution Utilities sales volume improved 9.9%.
Total expenses in 2023 were $15.43 billion, down 4.5% from the year-ago level.
Interest expenses amounted to $1.81 billion, up 29.4% from $1.40 billion in the year-ago quarter.
Guidance
American Electric reiterated its 2024 operating earnings guidance. It still expects to generate earnings in the band of $5.53-$5.73 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.55 per share, lower than the midpoint of the company’s projected range.
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 Utility Releases
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.
DTE Energy initiated its 2024 operating EPS projection. The company expects operating EPS in the range of $6.54-$6.83.
Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.
The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.
Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.