NEW YORK - American Electric Power (NASDAQ: NASDAQ:AEP) announced its first-quarter 2024 financial results, revealing an increase in adjusted earnings per share (EPS) but a slight miss on revenue expectations.
The company reported adjusted EPS of $1.27, marginally surpassing the analyst estimate of $1.26. However, revenue for the quarter was $5 billion, falling short of the consensus estimate of $5.08 billion.
The energy giant's adjusted EPS of $1.27 for the first quarter marked an improvement from the $1.11 reported in the same period last year. This increase reflects the company's ongoing investments in grid modernization and its ability to manage costs effectively, despite challenges such as inflation and interest rates.
AEP's GAAP earnings also saw a significant jump to $1 billion or $1.91 per share from $397 million or $0.77 per share in the first quarter of the previous year, with the difference largely attributed to an adjustment for deferred taxes.
Ben Fowke, interim CEO and president, highlighted the company's commitment to affordability while investing in infrastructure. "Affordability for our customers remains top of mind as we make these investments," Fowke said.
He also noted a 10.5% growth in commercial load YoY, a testament to AEP's strategic focus on economic development and its attractive transmission network for data centers and industrial customers.
Looking ahead, AEP provided full-year 2024 EPS guidance in the range of $5.53 to $5.73, with the midpoint of $5.63 slightly above the analyst consensus of $5.59. This guidance reflects the company's confidence in its capital plan, which includes a substantial $27 billion investment in transmission and distribution systems over the next five years.
Fowke also mentioned the company's progress in executing its capital plan, focusing on wires and new generation resources to meet customer demand. He cited the approval of $6.6 billion of the planned $9.4 billion investment in regulated renewables and ongoing efforts to diversify generation resources.
In addition to its financial achievements, AEP has taken steps to address the impacts of inflation and interest rates, including a voluntary workforce reduction program aimed at keeping customer bills affordable.
The company did not provide information on stock movement following the earnings release, and no specific driver of market response was indicated. However, the financial results and forward-looking statements suggest a strategic approach to growth and cost management that may influence investor sentiment.
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