American Electric Power Company Inc (NYSE: AEP) stock price will probably go down today on Q1 2020 financial results. Here are the key takeaways from today.
EARNINGS GUIDANCE – AEP management reaffirmed its 2020 operating earnings guidance range of $4.25 to $4.45 per share. Operating earnings could differ from GAAP earnings for matters such as impairments, divestitures or changes in accounting principles. AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.Reflecting special items recorded through the first quarter, the estimated earnings per share on a GAAP basis would be $4.23 to $4.43 per share. See the table below for a full reconciliation of 2020 earnings guidance.
“Our long-term investment strategy to enhance service for our customers and grow our contracted renewables business bolstered earnings for the quarter, despite the negative impacts of warmer than normal weather. Our Transmission Holding Co. business contributed 28 cents per share to earnings in the first quarter, an improvement of 3 cents over the first quarter last year. Net plant in that business increased by 18% since March 2019, primarily to address aging infrastructure.”- said Nicholas K. Akins, AEP chairman, president and CEO.
|•||First-quarter 2020 earnings $1.00 per share GAAP and $1.02 per share operating|
|•||Company reaffirms 2020 operating earnings (non-GAAP) guidance range of $4.25 to $4.45 per share and 5% to 7% long-term operating earnings growth rate|
“Based on unfavorable weather in the first quarter, our updated load forecast and the actions we have taken, we expect to be in the lower half of our existing 2020 operating earnings guidance range of $4.25 to $4.45 per share,” Akins said