American Electric Power Company Inc. (AEP) reported fourth-quarter 2014 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 52 cents by 7.7%. The quarterly figure also moved downward from the year-ago profit of 60 cents per share by 20%. The company’s plan to speed up spending and shift costs from upcoming years into 2014 negatively affected the quarterly results.
2014 operating earnings were $3.43 per share, missing the Zacks Consensus Estimate of $3.47 by 1.2%. The operating figure however improved 6.2% year over year from $3.23 per share.
Total Revenue
American Electric Power’s fourth-quarter revenues of $4.0 billion missed the Zacks Consensus Estimate of $4.4 billion by 9.1% but exceeded the year-ago number of $3.8 billion by 5.3%.
Full-year revenues were $17 billion, missing the Zacks Consensus Estimate of $17.1 billion by 0.6%. Reported revenues however registered a year-over-year increase of 10.4%.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter decreased to $56 million, down 49.6% year over year to $57 million. The downslide was due to the adverse impact of shifting costs from upcoming years for plant maintenance and forestry expenses.
Transmission & Distribution Operations: Operating earnings dropped to $76 million in the quarter from the prior-year figure of $77 million.
AEP Transmission Holdco: This unit generated operating income of $37 million during the quarter compared with $27 million in the fourth quarter of 2013, backed by increased transmission investment.
Generation and Marketing: Operating earnings were $30 million, down 38.8% from $49 million in the fourth quarter of 2013.
AEP River Operations: The segment registered an operating income of $32 million as against a profit of $24 million a year ago. This reflects improvements in barge freight demand.
Guidance
American Electric Power, reiterated its 2015 operating earnings guidance in the range of $3.40−$3.60 per share.
Upcoming Peer Releases
CMS Energy Corp. (CMS) is expected to release its fourth-quarter results on Jan 29, 2015. The Zacks Consensus Estimate stands at 36 cents.
Consolidated Edison, Inc. (ED) is expected to release its fourth-quarter results on Feb 19, 2015. The Zacks Consensus Estimate stands at 56 cents.
Duke Energy Corp. (DUK) is expected to release its fourth-quarter results on Feb 18, 2015. The Zacks Consensus Estimate stands at 89 cents.
Zacks Rank
American Electric Power current holds a Zacks Rank #3 (Hold).
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