American Electric Power Co. Inc.
) is set to report fourth quarter and full year results on Feb
15, 2013. Last quarter, the company met the Zacks Consensus
Estimate. Let's see how things are shaping up for this
Factors to Consider This Quarter
American Electric Power experienced a stable quarter with a few
organizational changes. Also, the company focused on redemption
of senior notes which would bring down the level of debt.
Moreover, the company's stable earnings base provides stability
to the revenue stream and insulates the company from adverse
regulatory decisions and detrimental effects of lower sales in a
particular service area.
Key growth drivers for the company are core regulated operations,
growth through transmission network expansion and an
above-average dividend yield. However, tepid economies in a
number of its service states, uncertainty surrounding pending
regulatory cases, its predominantly fossil-fuel based generation
assets, lower wholesale sales and no catalysts in the near term
compel us to remain on the sidelines.
Our proven model does not conclusively show that American
Electric Power is likely to beat earnings this quarter. This is
because a stock needs to have both a positive earnings Expected
Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here as you will see below.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 44
cents per share while the Zacks Consensus Estimate is at 45 cents
per share. That is a difference of -2.22%.
Zacks #3 Rank (Hold):
American Electric's Zacks Rank #3 (Hold) when combined with a
negative earnings ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
NV Energy, Inc.
) has earnings ESP of +14.29% and carries a Zacks Rank #3 (Hold).
) has earnings ESP of +2.17% and carries a Zacks Rank #3 (Hold).
) has earnings ESP of +133.33% and carries a Zacks Rank #3
AMER ELEC PWR (AEP): Free Stock Analysis
CALPINE CORP (CPN): Free Stock Analysis
NV ENERGY INC (NVE): Free Stock Analysis
PPL CORP (PPL): Free Stock Analysis Report
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