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American Electric (AEP) Q2 Earnings Beat, Revenues Rise Y/Y

American Electric Power Co., Inc. AEP reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%. Moreover, the bottom line improved 9.3% from $1.08 per share in the year-ago quarter.

The company reported GAAP earnings of $1.16 per share compared with the year-ago quarter’s $1.05.

Total Revenues

American Electric’s second-quarter revenues of $3,826.5 million beat the Zacks Consensus Estimate of $3,826.2 million by a whisker.

Moreover, the reported figure improved 9.8% from the year-ago quarter’s $3,481 million.

Quarterly Highlights

Total expenses in the quarter were $1,892.6 million compared with $1,806.5 million a year ago.

Adjusted operating income was $800.9 million, up 8.4% from $738.7 million in the year-ago quarter.

Segmental Performance

Vertically Integrated Utility Operations: Adjusted operating earnings in the quarter decreased to $227 million from $270.4 million in the year-ago quarter.

Transmission & Distribution Utilities: Operating earnings were $153.7 million, up from $139.5 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted operating earnings of $168.9 million, up from $93.9 million in the second quarter of 2020.

Generation and Marketing: Adjusted operating earnings were $45.3 million, down from $55.9 million in the year-ago quarter.

Corporate & Other: Adjusted operating losses were $5.4 million compared with adjusted operating losses of $31.6 million in the year-ago quarter.

Financial Update

As of Jun 30, 2021, American Electric had cash and cash equivalents of $312.7 million compared with $392.7 million as of Dec 31, 2020.

Long-term debt was $30.66 billion as of Jun 30, 2021, compared with $29 billion as of Dec 31, 2020.

Cash flow from operations was $1,043.9 million at the end of Jun 30, 2021 compared with cash flow of $1,746.2 million as of Jun 30, 2020.

2021 Guidance

American Electric reaffirmed 2021 operating earnings guidance in the range of $4.55-$4.75 per share. The Zacks Consensus Estimate for 2021 earnings, pegged at $4.68 per share, lies above the midpoint of the guidance range.

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

CenterPoint Energy CNP is set to release its second-quarter results on Aug 5.

Duke Energy DUK is set to release its second-quarter results on Aug 5.

Entergy ETR is set to release its second-quarter results on Aug 4.

 


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Entergy Corporation (ETR): Free Stock Analysis Report
 
Duke Energy Corporation (DUK): Free Stock Analysis Report
 
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
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