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American Electric Power Co., Inc. (AEP) is scheduled to report its Q2 2012 results on July 20, 2012, before the market opens. The street expects EPS and revenue of $0.71 and $3.58B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from AEP and the news from its closest competitors.

American Electric Power Co., Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.80 EPS, just beating analyst estimates of $0.79.

American Electric Power Co., Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.71 based on 9 analysts' estimates, down from $0.73 a year ago. Revenue estimates are $3.58B, just below from $3.60B a year ago. The median target price by analysts for the stock is $42.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On January 26, 2012, Deutsche Bank downgraded the company from Buy to Hold.

Latest News

  • On April 24, 2012, The Board of Directors of American Electric Power Co. declared a regular quarterly cash dividend of 47 cents a share on the company's common stock.
  • On April 24, 2012, American Electric Power continues to make progress on initiatives designed to deliver long-term shareholder value while managing near-term regulatory challenges in Ohio and lethargic economic recovery in some sectors, according to Nicholas K. Akins, AEP's president and chief executive officer. Akins addressed shareholders at the company's annual meeting today in Tulsa, Okla.
  • On April 20, 2012, American Electric Power reported 2012 first-quarter earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $389 million or $0.80 per share, compared with $353 million or $0.73 per share in first-quarter 2011. Ongoing earnings (earnings excluding special items) for first-quarter 2012 were the same as GAAP earnings, compared with $392 million or $0.82 per share in first-quarter 2011.
  • On March 8, 2012, American Electric Power announced that its unregulated subsidiary AEP Retail Energy has completed the acquisition of BlueStar Energy Holdings Inc. and its independent retail electric supplier BlueStar Energy Solutions.

Competitors

American Electric Power Co., Inc. could be compared to Duke Energy Corporation (DUK), Edison International (EIX), Entergy Corporation (ETR), NextEra Energy, Inc. (NEE), and Progress Energy Inc. (PGN). Below is the table comparison of the most important ratios between these companies and the industry.

American Electric Power Co., Inc. key ratio comparison with direct competitors

Below is the chart comparison with the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)AEP Chart

AEP data by YCharts

Competitors' Latest Development

  • On July 12, 2012, Reuters reported that Duke Energy Corp is under regulatory scrutiny over the abrupt ouster of its CEO, is not expected to be forced to undo its purchase of Progress Energy, but could face a cold reception when it seeks new power rates in North Carolina later this year.
  • On July 11, 2012, Block & Leviton LLP, a Boston-based law firm representing investors nationwide, announced that it is investigating possible breaches of fiduciary duties by the Board of Directors of Duke Energy Corporation (Duke Energy or the Company) in connection with its merger with Progress Energy Inc. (Progress Energy) and the subsequent ouster of Chief Executive Officer Bill Johnson (Johnson).
  • On July 7, 2012, Reuters reported that North Carolina officials late on July 6, 2012, launched two investigations into the surprising move by Duke Energy Corp directors to replace former Progress Energy Chief Executive Bill Johnson with Duke CEO Jim Rogers, just a day after a deal to create the largest U.S. utility company was finalized.
  • On July 3, 2012, Duke Energy announced the closing of its previously announced merger with Progress Energy Inc., effective July 2, 2012. The new Company will be known as Duke Energy and will remain headquartered in Charlotte, with substantial operations in Raleigh, N.C. Duke Energy will trade on the New York Stock Exchange under the symbol DUK. In accordance with the terms of the merger agreement, Progress Energy Inc. has become a wholly owned direct subsidiary of Duke Energy.
  • On July 3, 2012, Duke Energy announced that it had an adjusted diluted EPS guidance range of $1.40 to $1.45 for fiscal 2012. With the 1-for-3 reverse stock split, which was completed in connection with the merger, this stand-alone guidance range becomes $4.20 to $4.35 per share.
  • On July 3, 2012, Dow Jones reported that Duke Energy Corp.'s Latin American subsidiary Duke Energy International acquired bankrupt Chilean Campanario power plant from private-equity fund Southern Cross Group for $86.2 million.
  • On June 26, 2012, Duke Energy announced that it has declared a quarterly cash dividend on its common stock of $0.255 per share, an increase of a half-cent over the previous level.
  • On May 4, 2012, Duke Energy announced that first quarter of 2012 result shows, it is well-positioned to achieve fiscal 2012 adjusted earnings guidance range of $1.40 to $1.45 per share.
  • On May 3, 2012, Progress Energy Inc reaffirmed fiscal 2012 earnings guidance of $3.10 to $3.25 per share (EPS). According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.17 for fiscal 2012.
  • On April 27, 2012, Edison International announced that its Board of Directors declared a quarterly common stock dividend of $0.325 per share, payable July 31, 2012, to shareholders of record on June 29, 2012.
  • On April 26, 2012, Entergy Corp updated its fiscal 2012 earnings guidance range to be $3.55 to $4.35 per share on an as-reported basis and affirmed operational guidance of $4.85 to $5.65 per share previously updated on April 19, 2012.
  • On April 25, 2012, NextEra Energy, Inc. announced that for fiscal 2012, it expects adjusted earnings per share to be in the range of $4.35 to $4.65. It also continues to expect that adjusted EPS in fiscal 2014 will be in the range of $5.05 to $5.65. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $4.52 for fiscal 2012, and EPS of $4.94 for fiscal 2014.
  • On April 19, 2012, Entergy Corp announced that for fiscal 2012, it expects loss of approximately $(0.87) per share and operational earnings of approximately $0.43 per share.
  • On March 16, 2012, Lewis "Lew" Hay, III, 56, announced that he intends to retire from NextEra Energy, Inc., at the end of 2013 as part of a planned leadership succession process.
  • On March 12, 2012, NextEra Energy Resources, LLC, the competitive energy subsidiary of NextEra Energy, Inc. and First Solar, Inc. announced the completion of NextEra Energy Resources' acquisition of two solar photovoltaic (PV) projects totaling 40 megawatts (AC) in Ontario, Canada from First Solar.
  • On February 16, 2012, Duke Energy announced that it has established its 2012 adjusted diluted earnings per share guidance range at $1.40 to $1.45. This range does not contemplate the effects of the proposed Progress Energy merger.
  • On February 16, 2012, Progress Energy Inc announced that for fiscal 2012, it expects ongoing earnings of $3.10 to $3.25 per share.
  • On February 14, 2012, Reuters reported that Repsol YPF SA, Sonatrach, RWE AG and Edison International have obtained authorization from the Algerian National Agency for the implementation of a plan to develop six gas fields in the Reggane North Project in the Algerian Sahara.
  • On January 31, 2012, Entergy Corp affirmed previously issued operational earnings guidance for fiscal 2012 to be in the range of $5.40 to $6.20 per share . Previously issued as-reported earnings guidance of $5.40 to $6.20 per share for fiscal 2012 does not reflect any potential future expenses for the special item to be recorded in connection with the proposed spin-merge of Entergy's transmission business.
  • On January 27, 2012, Entergy Corporation announced that the Board of Directors has declared a quarterly dividend of $0.83 per common share. The payment date is March 1, 2012, to stockholders of record on February 9, 2012.
  • On January 27, 2012, NextEra Energy, Inc. announced that for fiscal 2012, it expects adjusted earnings per share to be $4.35-$4.65. According to I/B/E/S Estimates, analysts are expecting the Company to report ESP of $4.55 for fiscal 2012.
  • On January 23, 2012, Entergy Corporation announced that it expects fourth quarter 2011 as-reported earnings of approximately $0.86 per share and operational earnings of approximately $0.93 per share.
  • On January 19, 2012, Progress Energy Inc announced that the Board of Directors has declared a full quarterly dividend of $0.62 per share on outstanding shares of Progress Energy's common stock.

Technical Overview


The stock has a market capitalization of $20.19B and is currently trading at $41.69 with a 52 week range of $33.09 - $41.98. The stock's year-to-date performance has been 3.37%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: American Electric Power Company