Back to top

Image: Bigstock

What's in Store for American Electric (AEP) in Q2 Earnings?

Read MoreHide Full Article

American Electric Power Company, Inc (AEP - Free Report) is slated to release second-quarter 2024 results on Jul 30 before market open.

In the last reported quarter, the company delivered a negative earnings surprise of 2.31%. American Electric has a trailing four-quarter average negative earnings surprise of 1.01%.

Factors to Note

Most of the AEP’s service territories observed warmer-than-normal weather conditions in the second quarter. This must have increased the electricity demand for cooling purposes from the company’s customers during summer. This is likely to have contributed to American Electric's top line in the second quarter.

Other factors, like higher retail load, solid transmission revenues, increased customer volumes as well as favorable rate hikes in the previous quarters, must have also aided AEP’s quarterly results.

The Zacks Consensus Estimate for American Electric’s second-quarter revenues is pegged at $4.55 billion. This suggests 4.1% growth from the year-ago quarter.

Higher interest and depreciation expenses might have an adverse impact on the company’s bottom-line performance.

Nevertheless, benefits from favorable investments in the prior quarters, along with solid sales expectations, might have boosted American Electric’s overall earnings.

The Zacks Consensus Estimate for AEP’s second-quarter earnings is pegged at $1.23 per share. This indicates an increase of 8.9% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: AEP has an Earnings ESP of -0.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, American Electric carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Xcel Energy Inc. (XEL - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +2.77% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for XEL’s second-quarter earnings stands at 51 cents per share. The Zacks Consensus Estimate for XEL Energy’s second-quarter sales is pegged at $3.23 billion, which implies a 6.8% increase from that reported in the prior-year quarter.

The Southern Company (SO - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.38% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for SO’s second-quarter earnings stands at 91 cents per share, which suggests a 15.2% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $6.26 billion, which implies a 9% increase from that reported in the prior-year quarter.

The AES Corporation (AES - Free Report) is expected to report its second-quarter 2024 results on Aug 1 after market close. It has an Earnings ESP of +10.20% and carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for AES’ second-quarter earnings stands at 33 cents per share, which suggests a 57.1% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $3.08 billion, which implies a 1.7% increase from that reported in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

Published in