News

American Electric Power Company, Inc. AEP reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.23, which missed the Zacks Consensus Estimate of $1.27 by 3.1%. The bottom line, however, improved 17.1% from $1.05 recorded in the year-ago quarter.

The company reported GAAP earnings of 64 cents per share compared with the year-ago quarter’s figure of 75 cents.

For 2023, the company generated adjusted EPS of $5.25, up from $5.09 recorded in 2022. The full-year bottom line, however, missed the consensus estimate of $5.27 by 0.4%.

Total Revenues

American Electric’s fourth-quarter operating revenues of $4,600 million lagged the Zacks Consensus Estimate of $5,217 million by 11.8%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,881 million.

For 2023, the company generated revenues of $18.98 billion compared with $19.64 billion in 2022. The full-year top line also missed the consensus estimate of $19.69 billion.

Segmental Performance

Vertically Integrated Utility Operations: Adjusted earnings for the quarter increased to $237.8 million from $208.7 million in the year-ago period.

Transmission & Distribution Utilities: Adjusted earnings totaled $188.6 million, up from $112.6 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated adjusted earnings of $159.3 million, down from $188.1 million in the year-ago quarter.

Generation and Marketing: Adjusted earnings amounted to $103.5 million, up from $81.1 million in the year-ago quarter.

All Other: The segment reported a loss of $42.3 million compared with a loss of $50.4 million in the year-ago period.

Highlights of the Result

In the reported quarter, electricity sales volume from Vertically Integrated Utilities dropped 4.7% year over year, while Transmission & Distribution Utilities sales volume improved 9.9%.

Total expenses in 2023 were $15.43 billion, down 4.5% from the year-ago level.

Interest expenses amounted to $1.81 billion, up 29.4% from $1.40 billion in the year-ago quarter.

Guidance

American Electric reiterated its 2024 operating earnings guidance. It still expects to generate earnings in the band of $5.53-$5.73 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.55 per share, lower than the midpoint of the company’s projected range.

Zacks Rank

American Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

DTE Energy Company DTE reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.

DTE Energy initiated its 2024 operating EPS projection. The company expects operating EPS in the range of $6.54-$6.83.

Xcel Energy XEL reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.

The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.

CMS Energy Corporation CMS reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.

Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.

Just Released: Zacks Top 10 Stocks for 2024

Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.

See New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.