Golf Clap for American Electric Power

Seth Jayson, The Motley Fool
Updated

American Electric Power (NYS: AEP) filed its 10-K on Tuesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American Electric Power met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue didn't change, and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins dropped, and net margins increased.

Revenue details
American Electric Power notched revenue of $3.40 billion. The five analysts polled by S&P Capital IQ anticipated revenue of $3.45 billion on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $3.43 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.40. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS of $1.02 for Q4 were 176% higher than the prior-year quarter's $0.37 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.6%, 320 basis points worse than the prior-year quarter. Operating margin was 11.4%, 280 basis points worse than the prior-year quarter. Net margin was 8.9%, 380 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.75 billion. On the bottom line, the average EPS estimate is $0.82.

Next year's average estimate for revenue is $15.16 billion. The average EPS estimate is $3.13.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Electric Power is hold, with an average price target of $41.03.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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