American Electric Power Co., Inc. AEP reported first-quarter 2018 adjusted earnings per share (EPS) of 96 cents, missing the Zacks Consensus Estimate of $1.00 per share by 4%.
The bottom line was on par with the previous year’s reported figure.
Excluding the one-time items, the company reported GAAP earnings of 92 cents per share, compared to the year-ago quarter’s figure of $1.20.
Total Revenues
American Electric’s first-quarter revenues of $4 billion surpassed the Zacks Consensus Estimate of $3.86 billion by 3.6%. The reported figure was also higher than the year-ago quarter’s revenue of $3.9 billion by 2.6%.
Quarterly Highlights
Operating expenses in the reported quarter were $1,850.2 million compared with $1,657.7 million a year ago.
Operating income in the quarter was $729.8 million, down 16% from $873.3 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter rose to $231.2 million from $219.5 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $125.4 million in the quarter, up from $119.1 million a year ago.
AEP Transmission Holdco: This segment generated operating income of $104 million, up from $71.8 million recorded in the first quarter of 2017.
Generation and Marketing: Operating earnings were $37 million, down from $68.3 million in the year-ago quarter.
Corporate & Other: Operating loss for the first quarter stands at $24.4 million, compared to operating loss of $4.4 million posted in the year ago quarter.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. Price, Consensus and EPS Surprise | American Electric Power Company, Inc. Quote
Financial Update
As of Mar 31, 2018, American Electric had $316.5 million in cash and cash equivalents compared with $412.6 million as of Dec 31, 2017.
Long-term debt was $18.84 billion as of Mar 31, 2018, compared with $19.42 billion as of Dec 31, 2017.
Cash flow from operations was $802.2 million at the end of first-quarter compared with $806.8 million at the end of Mar 31, 2017.
Guidance
American Electric reaffirmed 2018 operating earnings guidance in the range of $3.75-$3.95.
Zacks Rank
American Electric carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
DTE Energy DTE reported first-quarter 2018 operating earnings per share of $1.91, which beat the Zacks Consensus Estimate of $1.89 by 1.06%. Operating earnings improved 6.7% from the year-ago quarter’s figure of $1.79.
Entergy Corporation ETR reported first-quarter 2018 adjusted earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.31 by 11.5%. The reported figure also improved 17.2% from 99 cents in
the year-ago quarter.
Upcoming Peer Releases
CenterPoint Energy CNP is scheduled to report first-quarter 2018 results on May 4. The company carries a Zacks Rank #3.
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