American Electric (AEP) Q2 Earnings Beat, Revenues Fall Y/Y
American Electric Power Co., Inc. AEP reported second-quarter 2020 adjusted earnings per share of $1.08, which beat the Zacks Consensus Estimate of $1.05 by 2.9%. The bottom line also improved 8% from $1 in the year-ago quarter.
The company reported GAAP earnings of $1.05 per share compared with the year-ago quarter’s earnings of 93 cents.
The year-over-year upside can be attributed to favorable weather conditions along with solid costs savings and efficiency programs.
American Electric’s second-quarter revenues of $3.5 billion missed the Zacks Consensus Estimate of $3.8 billion by 7.9%. The reported figure also declined 2.8% from the year-ago quarter’s $3.6 billion.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Total adjusted expenses in the quarter were $1,778 million compared with $1,862 million a year ago.
Adjusted operating income was $738.7 million, up 26.1% from $585.6 million in the year-ago quarter.
Vertically Integrated Utility Operations: Operating earnings in the quarter increased to $270.4 million from $186.9 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $144.9 million, up from $131.3 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated operating earnings of $93.9 million, down from $154.6 million in the second quarter of 2019.
Generation and Marketing: Operating earnings were $55.9 million, up from $27.4 million in the year-ago quarter.
Corporate & Other: Operating losses were $31.6 million compared with operating loss of $6.6 million in the year-ago quarter.
As of Jun 30, 2020, American Electric had cash and cash equivalents of $348.8 million compared with $246.8 million as of Dec 31, 2019.
Long-term debt was $26.64 billion as of Jun 30, 2020, compared with $25.13 billion as of Dec 31, 2019.
Cash flow from operations was $1,746.2 million at the end of second-quarter 2020 compared with $1,800.8 million at the end of second-quarter 2019.
American Electric reaffirmed 2020 operating earnings guidance in the range of $4.25-$4.45 per share. The Zacks Consensus Estimate for 2020 earnings, pegged at $4.29, lies below the mid-point of the guidance.
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.
Other Utility Releases
FirstEnergy Corporation FE delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.
NextEra Energy, Inc. NEE reported second-quarter 2020 adjusted earnings of $2.61 per share, beating the Zacks Consensus Estimate of $2.50 by 4.4%.
CMS Energy Corporation CMS reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.
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