Yahoo Finance What's in Store for American Electric (AEP) in Q1 Earnings?
American Electric Power Company, Inc AEP is slated to release its first-quarter 2023 results on May 4 before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 6.06%. American Electric has a trailing four-quarter earnings surprise of 3.36%, on average.
Factors to Note
During most of the first quarter, AEP’s service territories observed warm weather conditions. These may have hurt the electricity demand for heating purposes from the company’s customers during winter. Additionally, some parts of its service territories experienced significant precipitation levels, resulting in wet weather conditions.
Also, some parts of its service territories experienced severe weather conditions, along with tornados, which may have disrupted the smooth flow of electricity to its customers. Such fluctuating weather patterns are likely to have caused a mixed impact on American Electric's overall revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $4.55 billion. This suggests a 1.1% decline from the year-ago quarter.
As mentioned above, American Electric’s service territories witnessed severe weather patterns, accompanied by wind gusts and tornados, in the first quarter. These may have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repair. This is likely to have weighed on AEP’s bottom line in the to-be-reported quarter.
Also, inflationary cost pressures, supply-chain disruptions and higher interest expenses might have dampened the company’s earnings in the first quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.14 per share. This indicates a decrease of 6.6% from the prior-year reported figure.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. price-eps-surprise | American Electric Power Company, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AEP carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Brookfield Renewable Partners BEP has an Earnings ESP of +115.39% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter sales, pegged at $692.7 million, implies a decline of 39% from the prior-year quarter’s tally.
BEP has a four-quarter negative earnings surprise of 271.73%. The Zacks Consensus Estimate for Brookfield’s first-quarter earnings is pegged at a loss of 13 cents per share.
Edison International EIX has an Earnings ESP of +0.24% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.04 per share, calling for a decline of 2.8% from the prior-year reported figure.
The Zacks Consensus Estimate for EIX’s first-quarter sales is pegged at $4.11 billion. This suggests a 3.6% increase from the prior-year reported figure.
PPL Corporation PPL has an Earnings ESP of +7.69% and a Zacks Rank #3. The Zacks Consensus Estimate for PPL Corporation’s first-quarter revenues is pegged at $1.86 billion, implying growth of 4.2% from the year-ago quarter.
The Zacks Consensus Estimate for PPL’s first-quarter earnings is pegged at 42 cents per share. This indicates growth of 2.4% from the prior-year reported figure.
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PPL Corporation (PPL) : Free Stock Analysis Report
Edison International (EIX) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
Brookfield Renewable Partners L.P. (BEP) : Free Stock Analysis Report
