Fool Checkup: American Electric Power Earnings

Seth Jayson, The Motley Fool
Updated

American Electric Power (NYS: AEP) reported earnings on Oct. 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), American Electric Power missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.


Gross margins grew, operating margins contracted, net margins contracted.

Revenue details
 American Electric Power reported revenue of $4.20 billion. The six analysts polled by S&P Capital IQ looked for revenue of $4.61 billion on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $4.33 billion.

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

EPS details
 EPS came in at $1.02. The 14 earnings estimates compiled by S&P Capital IQ forecast $1.03 per share. GAAP EPS of $1.00 for Q3 were 48% lower than the prior-year quarter's $1.92 per share.

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 39.0%, 120 basis points better than the prior-year quarter. Operating margin was 21.9%, 70 basis points worse than the prior-year quarter. Net margin was 11.7%, 970 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $3.77 billion. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $15.50 billion.

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The article Fool Checkup: American Electric Power Earnings originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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