Published on March 22nd, 2015 | by Daily Station Team

AEP (NYSE:AEP) Releases its4TH Quarter & Annual reports

AEP

The AEP or American Electrical Power (NYSE:AEP) announced its 4th quarter and full year earnings report on Wednesday 28th Jan before the markets opened. The American Electrical Power company posted adjusted earnings per share of $0.48 with revenues of $4 billion during the fourth quarter while the famous consensus company; Thomson Reuters gave estimates of EPS up to $0.5 and revenues as high as $4.2 billion. However, if were compare this year’s results with those of 2014’s we can see that the company’s previous years 4th quarter’s earnings reports showed and adjusted earnings per share of $0.6 and revenues of $3.8 billion.

 

Talking about the full year’s earnings report the company posted earnings per share of $3.43 with annual revenues of about $17 billion. This is somewhat near to what many consensus companies had expected. For example one of the consensus companies reported revenues of exactly $17 billion with adjusted earnings per share of $3.46. Moreover, these reports have not accounted the recent cancellation of a long term coal contract by the power supply company.

 

Besides this, American Electrical (NYSE:AEP) also gave expectations about its earnings for the year ahead and mentioned that the company will be getting earnings per share somewhere between $3.40 and $3.60. Consensus companies also gave their opinions about 2015’s earnings per share and expect the EPS to be near $3.53 with revenues of $17.24 billion.The company’s CEO told that American Electrical Power (NYSE:AEP) has witnessed the 5th consecutive successful quarter.

 

The overall growth is quiet satisfactory and in fact the commercial sales have increased per years for the first time since 2008. Moreover, the growth is our residential sector has also witnessed excellent growth and this rise is sales can be attributed to economic development in the sales where AEP (NYSE:AEP) provides its services. The CEO also mentioned that the tremendous growth we have seen from the shale gas operations is mainly due to falling oil prices.

 

Other departments of the company will be equally benefitted from this trend in oil prices.The companyhas also bought in some preplanned expenses in their budget which decrease their expected operational earnings by $56 million but will be beneficial for them in the long run and provide them a sound operating base.American Electric Power’s (NYSE:AEP) dividends were about 3.3% whereas the company also pays quarterly dividend of $0.53 per share.

 

Sadly, the power company deregulation had an adverse effect on AEP’s revenues but the effect was minimized by increasing revenues in the transmission segment. In fact these transmission revenues will definitely help the companyin recovering from the setback that might be caused by the PJM capacity market results in 2016-17.AEP’s share prices rose by almost 32% in 2014 whereas the company displayed its 52 week high stock rate previous Friday.

 

Currently American Electrical Power’s (NYSE:AEP) stocks are up by 5.1% in the Dow Jones average index whereas the stocks fell by 1.5% in the S&P 500.


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