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By Bob Cramer

American Electric Power Company Inc. (NYSE:AEP), a major electric utility company, today announced earnings results for the second quarter of its fiscal '14 (2QFY14; ended June 30) in pre-market hours. The results outperformed analysts' estimates for the quarter; revenues of $4 billion and per-share earnings of $0.80 were ahead of the Street's expectations of $3.9 billion and $0.75, respectively.

Revenues and EPS grew 11.7% and 9.6%, respectively, year-over-year (YoY). The company also reiterated full-year 2014 earnings guidance of $3.35-3.55 per share; analysts are modeling EPS of $3.48 a share.

Despite increased maintenance expenses in energy transmission, the company saw growth in almost every business segment due to favorable power prices. Backed by the increased energy demand from the industrial sector, the company experienced stable growth in the second quarter. Its top and bottom lines strengthened in the first half of 2013 due to increased energy demand as a result of the long winter.

The company also reported improved economies in the states with shale developments. Moreover, it announced last month that it plans to provide natural gas through a Columbia Gas of Ohio program, in addition to the energy provision business.

Analysts, as a result, remain bullish on the stock. Of the 26 analysts covering AEP stock, 14 recommend a Buy and 12 call for a Hold, with a mean target price of $55.8. At current levels, this is an upside of 3.3%.

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Disclosure: No positions.