American Electric Power Earnings Cheat Sheet: Here’s Why Shares Moved Nowhere

Although profit increased, S&P 500 (NYSE:SPY) component American Electric Power Company Inc’s (NYSE:AEP) net income missed the mean estimate by 8.8%. American Electric Power Co Inc 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 for the First Quarter

Results: Net income for American Electric Power Company Inc rose to $353 million (73 cents/share) vs. $345 million (72 cents/share) YoY. A rise of 2.3% from the year earlier quarter.

Revenue: Rose 3.7% to $3.7 billion YoY.

Actual vs. Wall St. Expectations: AEP (NYSE:AEP) fell short of the mean analyst estimate of 80 cents/share. Estimates ranged from 75 cents per share to 87 cents per share.

Quoting Management: “Our first-quarter earnings were improved from the same period last year, despite less favorable winter temperatures for the quarter across much of our 11-state service area,” said Michael G. Morris, AEP chairman and chief executive officer. “The improvement in earnings reflects the effect of our cost-reduction initiatives and our success in recovering operating costs in rate proceedings in a number of jurisdictions.

Key Stats: Net income has dropped 12% year over year on average across the last five quarters. Performance was hurt by a 57% decline in the second quarter of the last fiscal year from the year earlier quarter.

Competitors to Watch: CenterPoint Energy, Inc. (NYSE:CNP), Duke Energy Corporation (NYSE:DUK), FirstEnergy (NYSE:FE), Cleco (NYSE:CNL), PPL Corp (NYSE:PPL), Southern Company (NYSE:SO), DPL Inc (NYSE:DPL), Westar (NYSE:WR), NextEra (NYSE:NEE), Constellation Energy (NYSE:CEG), Progress Energy (NYSE:PGN) and Entergy Corporation (NYSE:ETR).

Today’s Performance: Shares of AEP closed at $35.49:


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