What’s in Store for American Electric (AEP) in Q1 Earnings?

American Electric Power Company, Inc.


AEP

is slated to release its first-quarter 2022 results on Apr 28 before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 4.26%. American Electric has a trailing four-quarter earnings surprise of 0.15%, on average.

Factors to Note

During most of the first quarter, AEP’s service territories observed mixed weather patterns. While some parts observed cooler-than-normal temperatures along with slight snowfall, other parts had warm weather and extreme drought conditions. Additionally, some parts of its service territories experienced significant precipitation levels, resulting in wet weather conditions.

Also, some parts of its service territories experienced severe weather conditions, along with tornadoes, which may have disrupted the smooth flow of electricity to its customers. Such fluctuating weather patterns are likely to have caused a mixed impact on the company’s overall revenue performance in the to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $4.52 billion, suggesting growth of 5.5% from the year-ago quarter.

As discussed above, American Electric’s service territories witnessed severe weather patterns, accompanied by wind gusts and tornados in the first quarter, which may have caused infrastructural damage, thus increasing the company’s operating expenses for restoration and repairing. This, in turn, is likely to have weighed on its bottom line in the to-be-reported quarter.

However, lower net interest expenses and property taxes related to increased investment levels may have aided the company’s earnings performance in the first quarter.

The Zacks Consensus Estimate for

first-quarter earnings

is pegged at $1.19 per share, indicating growth of 3.5% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for American Electric this time. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP

: The company’s Earnings ESP is -0.07%. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank

: AEP carries a Zacks Rank #3. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Stocks to Consider

Here are three

Utility

players you may want to consider as these have the right combination of elements to post an earnings beat this season:

PG&E Corporation


PCG

has an Earnings ESP of +1.96% and a Zacks Rank #3.

PG&E boasts a long-term earnings growth rate of 2.5%. The Zacks Consensus Estimate for PCG’s first-quarter sales and earnings is pegged at $4.97 billion and 26 cents per share, respectively.

Dominion Energy


D

has an Earnings ESP of +0.86% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter earnings, pegged at $1.17 per share, implies growth of 7.3% from the prior-year quarter’s tally.

Dominion Energy boasts a long-term earnings growth rate of 6.1%. D has a four-quarter earnings surprise of 1.09%.

Edison International


EIX

has an Earnings ESP of +13.71% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter earnings is pegged at 66 cents per share.

Edison boasts a long-term earnings growth rate of 3.9%. EIX has a four-quarter earnings surprise of 1.35%.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

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