American Electric Power Company Inc's 2Q Results: Postgame Scorecard
American Electric Power Company Inc (NYSE:AEP) reported higher net income for the second quarter even as revenue slowed.
Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 75 cents a share versus the 72 cents a share estimate and revenues of $3.6 billion versus the $3.57 billion estimate.
The company's net income for the quarter was $362 million. According to the reported number, this is up 2.8% from last year's levels. Revenue fell 0.2% from $3.61 billion in the same period last year.
Company Fundamental Trends Last quarter marked the third in a row of rising net income. Revenue declined last quarter after shrinking 2.8% to $3.63 billion in the first quarter.
History Against Expectations The company topped estimates last quarter after falling in line with expectations in the first quarter. It reported net income of 80 cents per share.
Official Comment: "We had solid financial performance in the second quarter, driven by warmer than normal weather and our continued disciplined approach to controlling costs," said Nicholas K. Akins, president and chief executive officer. "The economy in our service territories has shown some signs of improvement, with growth in our western states outpacing that in our eastern states."In operations, severe storms swept through our eastern states on June 29, causing considerable damage," Akins said. "At the peak we had more than 1.4 million customers in five states without power, an unprecedented outage number for AEP. We're proud of the efforts of our employees, contractors and crews from other utilities who worked long hours in extreme heat and difficult conditions to restore power to our customers."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.