American Electric Power Co Inc (AEP) Reports Q3 2023 Earnings, Narrows Guidance
Third-quarter 2023 GAAP earnings of $1.83 per share; operating earnings of $1.77 per share
2023 operating earnings (non-GAAP) guidance range narrowed to $5.24 to $5.34 per share, midpoint maintained at $5.29
Revenue for Q3 2023 stood at $5.3 billion, a decrease from $5.5 billion in Q3 2022
GAAP earnings increased to $953.7 million in Q3 2023 from $683.7 million in Q3 2022
On November 2, 2023, American Electric Power Co Inc (NASDAQ:AEP) released its third-quarter earnings report for 2023. The company reported GAAP earnings of $1.83 per share and operating earnings of $1.77 per share. The operating earnings guidance range for 2023 has been narrowed to $5.24 to $5.34 per share, with the midpoint maintained at $5.29.
Financial Performance Overview
Revenue for the third quarter of 2023 was $5.3 billion, showing a decrease from $5.5 billion in the same period in 2022. GAAP earnings increased significantly to $953.7 million in Q3 2023 from $683.7 million in Q3 2022. Operating earnings (non-GAAP) also increased to $923.8 million in Q3 2023 from $831.0 million in Q3 2022.
Company's Commentary
Our earnings growth this quarter was driven by our long-term strategy to invest in a modern, reliable energy system to meet the evolving needs of our customers while keeping electricity rates affordable, said Julie Sloat, AEP chair, president and chief executive officer. Our team has delivered these results in the face of high interest rates, inflation and unfavorable weather by actively managing the business, controlling costs and executing on our flexible and robust capital plan to help meet our stakeholder commitments."
Segment Performance
The company's Vertically Integrated Utilities segment reported GAAP earnings of $512.5 million in Q3 2023, an increase from $476.9 million in Q3 2022. The Transmission & Distribution Utilities segment reported GAAP earnings of $206.0 million in Q3 2023, a significant increase from $165.5 million in Q3 2022. The Generation & Marketing segment reported GAAP earnings of $130.7 million in Q3 2023, a substantial increase from $97.5 million in Q3 2022.
Looking Forward
AEP management has narrowed its 2023 operating earnings guidance range to $5.24 to $5.34 per share. The company is also reaffirming its long-term growth rate of 6% to 7% and FFO/Debt target of 14%-15%. The company is making significant progress on its five-year, $8.6 billion regulated renewables investment plan, with $6 billion in approved projects and $800 million currently pending commission approval.
Explore the complete 8-K earnings release (here) from American Electric Power Co Inc for further details.
This article first appeared on GuruFocus.
