American Electric Power Co., Inc. (NYSE:AEP) reported second-quarter 2019 adjusted earnings per share (EPS) of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.
However, the bottom line fell 1% from $1.01 per share in the year-ago quarter.
The company reported GAAP earnings of 93 cents per share compared with the year-ago quarter’s $1.07.
Total Revenues
American Electric’s second-quarter revenues of $3.60 billion missed the Zacks Consensus Estimate of $4.15 billion by 13.6%. The reported figure also declined 10.2% from the year-ago quarter’s revenues of $4 billion.
Quarterly Highlights
Operating expenses in the reported quarter were $1,861.9 million compared with $1,912.6 million a year ago.
Operating income in the quarter was $585.5 million, down 21% from $741.4 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter decreased to $186.9 million from $276.8 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $131.3 million in the quarter, up from $114 million a year ago.
AEP Transmission Holdco: This segment generated operating income of $154.6 million, up from $101.1 million reported in the second quarter of 2018.
Generation and Marketing: Operating earnings were $27.4 million, up from $26.5 million in the year-ago quarter.
Corporate & Other: Operating losses were $6.6 million compared with operating losses of $20.1 million in the year-ago quarter.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote
Financial Update
As of Jun 30, 2019, American Electric had cash and cash equivalents of $210.5 million compared with $234.1 million as of Dec 31, 2018.
Long-term debt was $24.17 billion as of Jun 30, 2019, compared with $21.65 billion as of Dec 31, 2018.
Cash flow from operations was $1,800.8 million during the first half of 2019 compared with $2,006.8 million in the first half of 2018.
2019 Guidance
American Electric has reaffirmed its 2019 operating earnings guidance of $4.00-$4.20 per share.
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.
Upcoming Utility Releases
Dominion Energy (NYSE:D) is scheduled to report second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at 79 cents.
Exelon Corp. (NYSE:EXC) is slated to report second-quarter 2019 results on Aug 1. The Zacks Consensus Estimate for earnings in the quarter is pegged at 63 cents.
A Recent Utility Release
NextEra Energy (NYSE:NEE) reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, earnings were up 12.9% on a year-over-year basis.
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Exelon Corporation (EXC): Free Stock Analysis Report
Dominion Energy Inc. (D): Free Stock Analysis Report
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
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