American Electric Power Earnings: Here’s Why Shares are Down Now

American Electric Power Co., Inc. (NYSE:AEP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.22%.

American Electric Power Co., Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.19% to $0.73 in the quarter versus EPS of $0.77 in the year-earlier quarter.

Revenue: Rose 1.38% to $3.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Electric Power Co., Inc. reported adjusted EPS income of $0.73 per share. By that measure, the company missed the mean analyst estimate of $0.74. It missed the average revenue estimate of $3.64 billion.

Quoting Management: “We are executing well on our earnings growth strategy. We continue to successfully direct significant investments to our regulated infrastructure for the benefit of our customers. The strong results from our regulated businesses, including transmission, are offsetting some of the negative earnings impacts from the transition to competition in Ohio,” said Nicholas K. Akins, AEP president and chief executive officer.

Key Stats (on next page)…

Revenue decreased 5.91% from $3.83 billion in the previous quarter. EPS decreased 8.75% from $0.80 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.07 to a profit $1.09. For the current year, the average estimate has moved down from a profit of $3.16 to a profit of $3.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]