American Electric Power Company Inc.
) posted adjusted first quarter 2013 operating earnings of 80
cents per share, which came in line with the Zacks Consensus
Estimate as well as the year-ago profit.
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The company witnessed solid residential and commercial sales
during the quarter, stemming from positive regulated rate
recovery. However, this was partly offset by weak industrial
On a reported basis, the company registered earnings of 75 cents
per share in the reported quarter versus 80 cents per share in
the year-ago period. The variance of 5 cents between reported and
operating numbers was due to a restructuring charge and the
reversal of a storm cost deferral from a change in Virginia law.
Quarterly revenue at American Electric Power was $3,826.0
million, higher than the Zacks Consensus Estimate of $3,746.0
million and the year-ago number of $3,625.0 million.
In the reported quarter, operating earnings from
decreased 2.9% year over year to $372.0 million. This was due to
customer switching in Ohio, partly offset by the favorable impact
of successful rate proceedings and the impact of cold weather
compared with mild temperatures last year.
Operating earnings from
rose more than 44% year over year to $13.0 million.
AEP River Operations
registered an operating loss of $2.0 million in the reported
quarter versus an operating income of $9.0 million in the
year-earlier period. This was primarily due to the 2012 drought,
which had significant impacts on river conditions and crop
yields, resulting in reduced grain exports.
Operating earnings from
Generation and Marketing,
which includes American Electric's non-regulated generating,
marketing and risk management activities primarily in the
Electric Reliability Council of Texas (ERCOT) area, increased to
$7.0 million versus an operating loss of $1.0 million in the
first quarter of 2012.
, which includes the Parent Company and other investments,
narrowed its operating loss to $3.0 million from $11.0 million in
the year-ago quarter. The improvement was primarily attributed to
the reduction in interest expense.
American Electric Power ended the first quarter with cash and
cash equivalents of $179.0 million and other cash deposits of
$261.0 million. At year-end 2012, the company had $279.0 million
in cash and cash equivalents and $324.0 million of other cash
deposits. The company generated approximately $756.0 million of
cash from operating activities in the reported quarter versus
$876.0 million in the same period last year. Long-term debt
increased to $15,899.0 million at the end of the reported quarter
from $15,586.0 million at the end of full year 2012. The
debt-to-capitalization ratio was 50.8% at the end of first
American Electric Power maintained its 2013 operating earnings in
the range of $3.05 to $3.25 per share.
American Electric Power currently retains a Zacks Rank #3 (Hold).
Stocks in the energy sector worth considering are
Brookfield Infrastructure Partners L.P.
Empresa Nacional de Electricidad S.A.
Pike Electric Corporation
), all with a Zacks Rank #1 (Strong Buy).