It has been about a month since the last earnings report for American Electric Power Company, Inc. AEP. Shares have added about 4.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
American Electric Misses Q1 Earnings, Keeps EPS View
American Electric Power reported first-quarter 2017 operating earnings of $0.96 per share, missing the Zacks Consensus Estimate of $0.97 by 1%.
Earnings also dropped 5.9% year over year owing to warmer-than-normal winter weather conditions.
Total Revenue
American Electric’s first-quarter revenues of $3,936.2 million fell 2.7% from $4,044.9 million in the year-ago quarter. The reported figure however exceeded the Zacks Consensus Estimate of $3,874.4 million.
Quarterly Highlights
Operating expenses incurred in the reported quarter were $1,646.3 million, compared with $1,745 million a year ago.
Operating income in first-quarter 2017 was $884.7 million, down 1% from $892.9 million a year ago.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter declined to $219.5 million from $277.6 million a year ago.
Transmission & Distribution Utilities: Operating earnings were $119.1 million in the quarter, up from $107.5 million a year ago.
AEP Transmission Holdco: This segment generated an operating income of $71.8 million, up from $43.9 million recorded in the first quarter of 2016.
Generation and Marketing: Operating earnings were $68.3 million, down from $70.7 million in the first quarter of 2016.
Financial Update
As of Mar 31, 2017, American Electric had $175 million in cash and cash equivalents, compared with $210.5 million as of Dec 31, 2016.
Long-term debt was $19.24 billion as of Mar 31, 2017, compared with $20.26 billion as of Dec 31, 2016.
Cash flow from operations was $806.8 million in the first quarter of 2017, compared with $799.9 million in the prior year quarter.
Guidance
American Electric reaffirmed its 2017 operating earnings guidance at the range of $3.55–$3.75.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been no revision higher for the current quarter compared to one lower.
American Electric Power Company, Inc. Price and Consensus