What's In Store For American Electric (AEP) In Q3 Earnings?
Zacks Investment Research | Oct 23, 2017 11:37PM ET
American Electric Power Company, Inc. (NYSE:AEP) is set to release third-quarter 2017 financial results on Oct 26, before the market opens. Last quarter, this electric utility witnessed a negative earnings surprise of 8.54%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
American Electric is highly dependent on coal for production of electricity. Therefore, President Trump’s emphasis on improving the coal industry and relaxing the stringent environmental regulations in recent times are likely to boost the company’s prospects in the near term..
Also, American Electric is expected to benefit from the improving economic conditions in its service territories and its efficient cost-management initiatives.
Markedly, Ohio and Texas represents more than one-half of utility revenues of the company. However, the power generation from these states is deregulated, consequently leading to the current lower price environment. This, in turn, is expected to hurt earnings of American Electric Power.
Moreover, hurricane Harvey that hit the coasts of Texas at the onset of last month, hampered the smooth flow of electricity through the transmission lines leading to widespread outages in the state. As American Power’s subsidiary, AEP Texas, engaged in the transmission and distribution of electric power to approximately 1 million retail customers therein, we expect the company’s third-quarter bottom line to be affected severely.
In line with this, the Zacks Consensus Estimate reflected an annual decline of 3.6% on revenues of $4.17 billion, reflecting a 10.4% decline year over year.
American Electric Power Company, Inc. Price and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.