S&P 500 (NYSE:SPY) component American Electric Power Company Inc (NYSE:AEP) reported its results for the third quarter. American Electric Power is a public utility holding company that provides electric service, consisting of generation, transmission, and distribution, to its retail customers through subsidiaries.
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American Electric Power Company Inc Earnings Cheat Sheet
Results: Net income for the utility-electric power fell to $487 million ($1 per share) vs. $929 million ($1.92 per share) a year earlier. This is a decline of 47.6% from the year-earlier quarter.
Actual vs. Wall St. Expectations: American Electric Power Company Inc reported adjusted net income of $1.02 per share. By that measure, the company fell in line with the mean estimate of $1.02 per share.
Quoting Management: “Continued discipline around controlling costs and positive rate changes across multiple jurisdictions partially offset a number of negative impacts on our financial performance in the third quarter. Customer switching in Ohio and the restoration costs associated with the June 29 derecho, which left an unprecedented 1.4 million of our customers in five states without power, hurt our performance. The drought and associated low-water conditions also hampered our river transportation business,” said Nicholas K. Akins, president and chief executive officer.
Last quarter’s profit decrease ends a four-quarter streak of profit increases. In the second quarter, net income rose 2.8% from the year earlier, while the figure increased 9.9% in the first quarter, 75.7% in the fourth quarter of the last fiscal year and 67.1% in the third quarter of the last fiscal year.
The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 77 cents versus a mean estimate of net income of 72 cents per share.
Looking Forward: The average estimate for the fourth quarter is steady at 46 cents a share. For the fiscal year, the average estimate has moved down from $3.06 a share to $3.05 over the last sixty days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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