American Electric Power Q3: EPS Beat, Revenue Miss, 10% Commercial Load Jump & More

American Electric Power Company, Inc. AEP reported the third quarter revenue of $5.42 billion, missing the consensus of $5.434 billion.

Commercial load increased more than 10% year-over-year through the third quarter. The company projects commercial load to grow an average of 20% annually over the next three years on the basis of customer contracts signed so far.

Total energy distribution fell 1.0% in the Vertically Integrated Utilities segment and rose 4.1% in the Transmission & Distribution Utilities segment. 

Adjusted operating earnings rose to $985.4 million from $923.8 million a year ago. 

Adjusted operating earnings from Vertically Integrated Utilities rose to $572.4 million from $520.0 million the prior year, and AEP Transmission Holdco grew to $214.7 million from $202.9 million in the prior year’s quarter.

Adjusted EPS of $1.85 beat the consensus of $1.80.

FY24 Outlook: American Electric Power narrowed adjusted operating earnings per share guidance from $5.53 – $5.73 to $5.58 – $5.68 vs. consensus of $5.62.

The company sees FY25 adjusted EPS of $5.75 – $5.95 vs consensus of $5.98. The company now expects a long-term growth rate outlook of 6% to 8% (vs. 6% to 7% prior).

Bill Fehrman, AEP president and chief executive officer, said, “AEP has a strong foundation and significant growth opportunities ahead, and we are confident in our ability to execute our strategy and deliver on our promises. This confidence is reflected in our new 6%-8% long-term growth rate and expanded capital investment plan of $54 billion over the next five years, along with our commitment to a strong balance sheet.”

Investors can gain exposure to the stock via Listed Funds Trust TrueShares Eagle Global Renewable Energy Income ETF RNWZ SPDR Select Sector Fund – Utilities XLU.

Price Action: AEP shares are down 0.90% at $99.50 premarket at the last check Wednesday.

Photo by american-public-power-association- for Unsplash

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