American Electric Power (AEP) Tops Q3 EPS by 5c, Revenues Beat; Lifts FY18 EPS Guidance

October 25, 2018 6:59 AM EDT

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American Electric Power (NYSE: AEP) reported Q3 EPS of $1.26, $0.05 better than the analyst estimate of $1.21. Revenue for the quarter came in at $4.3 billion versus the consensus estimate of $4.21 billion.

"We've increased and narrowed our 2018 operating earnings guidance range in response to our strong earnings performance in the third quarter and year-to-date. That performance has been driven by strategic investments in our core businesses to improve service to customers, combined with very favorable weather. Additionally, AEP's Board of Directors voted earlier this week to boost our quarterly dividend by 5 cents to 67 cents per share, an increase of 8.1 percent," said Nicholas K. Akins, AEP chairman, president and chief executive officer.

"The impact of weather on sales has been favorable in every quarter this year. Cooling and heating degree days combined in 2018 are the second highest we\'ve seen in the last 30 years. The positive impacts of weather have allowed us to expand our discretionary spending in areas that will directly improve our service to customers," Akins said.

"Strategic investments in our Transmission Holding Co. business remain on track and continue to support our earnings growth, with net plant assets growing by $1.6 billion year-over-year, an increase of 26 percent.

"We expect to end 2018 with positive load growth overall, but the strong economic indicators we saw earlier in 2018 are now being tempered by tightening labor markets, higher inflation and escalating trade tensions," Akins said.

GUIDANCE:

American Electric Power sees FY2018 EPS of $3.88-$3.98, versus the consensus of $3.94.

For earnings history and earnings-related data on American Electric Power (AEP) click here.



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