American Electric Power Company, Inc. (NASDAQ:AEP) reported the second quarter 2024 revenue of $4.60 billion, missing the consensus of $4.74 billion.
Commercial load increased by 12.4% Y/Y, driven by over a 20% gain at its Transmission & Distribution companies, with new data processing facilities coming online.
Total energy distribution rose 2.0% Y/Y in the Vertically Integrated Utilities segment and 12.0% in the Transmission & Distribution Utilities segment.
Adjusted operating earnings rose to $662.0 million from $582.2 million a year ago.
Adjusted operating earnings from Vertically Integrated Utilities fell to $244.8 million from $260.4 million the prior year, and AEP Transmission Holdco grew to $208.9 million from $196.5 million in the prior year's quarter.
Adjusted EPS of $1.25 beat the consensus of $1.23.
In the quarter, the company launched a voluntary workforce reduction program involving around 1,000 employees and expects to see the program's benefits in the latter half of the year.
FY24 Outlook: American Electric Power reiterated adjusted operating earnings per share guidance at $5.53-$5.73 vs. consensus of $5.62.
The company also maintained a long-term growth rate outlook of 6% to 7%.
In June, American Electric appointed William J. "Bill" Fehrman as president and CEO, effective August 1, 2024.
Ben Fowke, interim chief executive officer and president, said, "To help meet the growing energy needs of our customers and communities, we're making steady progress transforming our generation fleet with active requests for proposals and plans to add more than 20 gigawatts of new resources over the next decade."
"In June, Public Service Company of Oklahoma announced it will seek regulatory approval of an agreement to purchase Green Country, a 795-megawatt natural gas generation facility that will serve as a reliable and affordable local energy resource for customers."
Investors can gain exposure to the stock via SPDR Select Sector Fund – Utilities (NYSE:XLU) and Opal Dividend Income ETF (NYSE:DIVZ).
Price Action: AEP shares are down 0.18% at $96.90 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.