American Electric Power Company Inc.
) posted second-quarter 2013 pro forma earnings per share of 73
cents, missing both the Zacks Consensus Estimate as well as the
year-ago result by 4 cents. The decline in earnings was primarily
due to decrease in residential, commercial and industrial sales,
and rise in fuel costs for electricity generation.
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On a GAAP basis, American Electric Power registered earnings of
69 cents per share versus 75 cents per share a year ago. The
difference between GAAP and pro forma earnings was due to an
impairment charge of 20 cents for the expected retirement of
Muskingum River Plant Unit 5 and a gain of 16 cents related to
United Kingdom windfall tax credit.
American Electric Power's quarterly revenue was $3,582 million,
missing the Zacks Consensus Estimate by $56 million. However,
revenues increased by 0.9% year over year due to strong
contribution from the Transmission Operations and Generation and
Operating earnings decreased 14% year over year to $320 million.
This was primarily due to cooler weather, negative impacts
related to the higher competition in Ohio, and decline in
capacity payments in the PJM Interconnection.
Operating earnings was $18 million, up 125% year over year due to
an increase in transmission investment.
AEP River Operations:
This segment registered operating loss of $9 million versus
operating earnings of $3 million a year ago. The company's
quarterly performance decreased due to a decline in coal and
Generation and Marketing:
Operating earnings was $4 million versus an operating loss of $5
million. Improvement in earnings was due to increase in trading
and marketing margins.
Operating earnings increased to $24 million from a loss of $8
million driven by increased interest income related to a
favorable court decision for the United Kingdom windfall profit
American Electric Power's cash and cash equivalents as of Jun 30,
2013 was $117 million versus $279 as of Dec 31, 2012.
Long-term debt was $15.8 billion as of Jun 30, 2013 versus $15.6
billion as of Dec 31, 2012.
American Electric Power's cash flow from operating activities
during the first six months of 2013 was $1.5 billion compared
with $1.7 billion in the year-ago comparable period.
American Electric Power maintained its full-year 2013 operating
earnings guidance in the range of $3.05 to $3.25 per share.
American Electric Power currently has a Zacks Rank #3 (Hold).
However, other stocks in the industry that are worth considering
Companhia Paranaense de Energia
Integrys Energy Group, Inc.
) with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).