25 Apr

AEP Reports Solid Q1 Results, EPS Grow 24%

WRITTEN BY Vineet Kulkarni

AEP beats estimates

American Electric Power (AEP), one of the biggest electric utility companies, released its first-quarter earnings today. Its EPS of $1.19 beat analysts’ estimates for a fourth consecutive quarter and rose 24% YoY (year-over-year) from $0.96. In 2018, AEP’s EPS rose 7% YoY to $3.95.

AEP Reports Solid Q1 Results, EPS Grow 24%

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Earnings highlights

In the first quarter, AEP’s total revenue rose YoY to $4.1 billion from $4.0 billion. Its residential sales rose 1%, driven by a higher customer count and usage, and its industrial sales fell. Whereas the utility’s load growth declined YoY during the quarter, AEP expects ~1% load growth this year.

AEP has guided for operating earnings of $4.00–$4.20 and long-term EPS growth of 5%–7% per year. It plans to make ~$33.0 billion in capital investments through 2023, mainly in transmission and distribution. AEP stock has gained ~13% this year, beating other utilities (XLU) overall.

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