American Electric Power (AEP) Misses Q1 EPS by 1c, Revenues Beat; Reaffirms FY21 EPS Guidance
- Dow ends at record high, Nasdaq falls as tech slides
- Trump's Facebook (FB) Ban Upheld, Oversight Board Asks Company to Come Up With a 'Proportionate Response' Going Forward
- PayPal (PYPL) Tops Q1 EPS by 21c, Offers Q2 and FY Guidance
- Peloton (PTON) Plunges After Recalling All Treadmills, Analyst Says Will Negatively Impact Broader Tread Rollout
- T-Mobile (TMUS) Gains After Topping Q1 Consensus as 5G Story Accelerates, 'More to Come' Says Analyst
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
American Electric Power (NASDAQ: AEP) reported Q1 EPS of $1.15, $0.01 worse than the analyst estimate of $1.16. Revenue for the quarter came in at $4.3 billion versus the consensus estimate of $4.14 billion.
"Our solid earnings for the quarter reflect the continued investments we are making to enhance service for our customers and modernize the grid as we accelerate our transition to a clean energy future," said Nicholas K. Akins, AEP chairman, president and chief executive officer.
"We are making significant progress in diversifying our generation fleet with investments in renewable energy resources. Last week, we reached a milestone with the commercial operation of Sundance, the first of three North Central wind projects that will provide clean energy to our customers in Arkansas, Louisiana and Oklahoma while also saving them an estimated $3 billion in electricity costs over the next 30 years.
"We have reviewed the resource needs for each of our regulated operating companies and propose to add nearly 16,600 megawatts of new, clean wind and solar generation to our fleet by 2030, growing our renewable generating portfolio to more than 50 percent of our total capacity. In addition, Indiana Michigan Power and AEP Generating Company have reached an agreement to acquire the 1,310-megawatt Rockport Plant Unit 2 from the current owners when the lease expires at the end of 2022. This acquisition will provide a short-term capacity bridge for customers as we transition to more renewable generation and will ensure both Rockport Plant units are retired by the end of 2028. These investments in our generation portfolio support our goals of making our generation fleet cleaner, more economical and achieving net zero carbon dioxide emissions by 2050," Akins said.
"Our investments to strengthen the reliability and resiliency of the grid support the nation's clean energy goals and continue to bolster our earnings performance. AEP's Transmission Holding Co. business contributed 35 cents per share in the first quarter, an increase of 7 cents from the same period last year. Net plant assets in our Transmission Holding Co. grew by $1.3 billion, or 13%, since March 2020.
"We saw colder temperatures overall in the first quarter compared with the mild winter last year. We also experienced extreme weather in several parts of AEP's territory, including the devastating events in Texas. These significant weather events highlight the interdependent nature of the energy system and the critical need for resiliency. We remain focused on supporting our customers and communities following the impacts from these storms.
"As expected, we continue to see load changes related to the pandemic with many residential customers returning to work outside the home, and commercial businesses, including schools, churches, restaurants and hotels, showing steady improvement. We expect industrial sales to improve, following a temporary slowdown due to the February storm, as manufacturing supply chains are strengthened and the economy continues to recover from the pandemic this year," Akins said.
American Electric Power sees FY2021 EPS of $4.55-$4.75, versus the consensus of $4.66.
AEP management reaffirmed its 2021 operating earnings guidance range of $4.55 to $4.75 per share. Operating earnings could differ from GAAP earnings for matters such as impairments, divestitures or changes in accounting principles. AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.
Reflecting special items recorded through the first quarter, the estimated earnings per share on a GAAP basis would be $4.56 to $4.76 per share.
For earnings history and earnings-related data on American Electric Power (AEP) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Q2 Holdings (QTWO) Tops Q1 EPS by 2c, Revenues Beat; Offers 2Q & FY21 Revenues Guidance Above Consensus
- Lannett (LCI) Misses Q3 EPS by 14c, Revenues Miss; Offers FY21 Revenues Outlook
- Kennedy-Wilson (KW) Tops Q1 EPS by 2c, Revenues Miss
Create E-mail Alert Related CategoriesCorporate News, Earnings, Guidance, Management Comments
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!