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American Electric (AEP) Q2 Earnings Beat, Revenues Rise Y/Y

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American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $1.25, which beat the Zacks Consensus Estimate of $1.23 by 1.6%. The bottom line also improved 10.6% from $1.13 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 $1.01.

Total Revenues

Operating revenues of $4.73 billion rose 5.6% from the year-ago quarter’s level of $4.48 billion.

The company reported GAAP revenues of $4.58 billion, which improved 4.7% year over year. 

The Zacks Consensus Estimate is pegged at $4.54 billion.

Segmental Performance

Vertically Integrated Utility Operations: Adjusted earnings for the quarter declined to $244.8 million from $260.4 million in the year-ago period.

Transmission & Distribution Utilities: Adjusted earnings totaled $215.3 million, up from $156.5 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted earnings of $208.9 million, up from $196.5 million in the year-ago quarter.

Generation and Marketing: Adjusted earnings amounted to $61 million, down from $66.1 million in the year-ago quarter.

All Other: The segment reported a loss of $68 million compared with a loss of $97.3 million in the year-ago period.

Highlights of the Result

Electricity sales volume from Vertically Integrated Utilities increased 2% year over year, while the same from Transmission & Distribution Utilities improved 12%.

Total expenses in the second quarter of 2024 were $3.62 billion, up 2.6% from the year-ago level.

Interest expenses amounted to $465.6 million, up 1.2% from the year-ago quarter’s figure.

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 $5.59 per share, which lies lower than the mid-point of the company’s projected 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.

Recent Utility Releases

PG&E Corporation (PCG - Free Report) reported second-quarter 2024 adjusted EPS of 31 cents, which surpassed the Zacks Consensus Estimate of 30 cents by 3.3%. The bottom line also improved 34.8% from the year-ago quarter’s reported figure.

PCG reported second-quarter total revenues of $5.99 billion, up 13.2% from $5.29 billion registered in the year-ago period. Operating revenues also surpassed the Zacks Consensus Estimate of $5.83 billion by 2.7%.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line also rose nearly 9.1% year over year.

Operating revenues amounted to $6.06 billion, which lagged the Zacks Consensus Estimate of $7.26 billion by 16.8%. The top line plunged 17.4% year over year.

CMS Energy Corporation (CMS - Free Report) reported second-quarter 2024 adjusted EPS of 66 cents, which beat the Zacks Consensus Estimate of 63 cents by 4.8%. However, the bottom line declined 12% from 75 cents reported in the prior-year quarter.

Operating revenues totaled $1.61 billion, which lagged the Zacks Consensus Estimate of $1.69 billion by 5%. However, the top line increased 3.3% on a year-over-year basis.

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