American Electric Power Misses Expectations
January 28 2016 - 8:59AM
Dow Jones News
By Joshua Jamerson
American Electric Power Inc. (AEP) reported earnings and revenue
for the fourth quarter that missed Wall Street expectations, as
unseasonably warm weather late last year impacted results.
The Columbus, Ohio, utility, which serves about five million
customers across 11 states, said a weak global economy, low oil
prices and a stronger dollar also crimped results for the three
months ended Dec. 31.
American Electric's vertically integrated utilities business
more than doubled in the quarter to $117 million in operating
earnings, reflecting favorable rates and lower operations and
maintenance expenses, among other conditions. The transmissions
business, which the company has pegged for growth, contributed 39
cents a share for the full year, up 26% from 2014.
Overall for the quarter, American Electric reported net profit
of $469 million, or 96 cents a share, up from $191 million, or 39
cents a share, the year before. Excluding one-time items, such as
the sale of its commercial barge operations in November 2015,
per-share earnings were 48 cents, unchanged from a year
earlier.
Revenue slid 5.3% to $3.6 billion. Analysts polled by Thomson
Reuters expected per-share earnings of 50 cents on revenue of $3.88
billion.
AEP backed its 2016 operating earnings guidance range of $3.60
to $3.80 a share. It also increased capital investments for 2017
and 2018 to $5 billion annually.
Shares, down 8.2% in the past 12 months, were unchanged in
premarket trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 28, 2016 08:44 ET (13:44 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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