American Electric Lifts FY15 Operating EPS Guidance

(RTTNews) - Electric utility American Electric Power Co Inc (AEP) Tuesday raised its operating earnings guidance for fiscal year 2015 to $3.40 to $3.60 per share from prior guidance of $3.30 to $3.60 per share. Analysts polled by Thomson Reuters currently expect earnings of $3.56 per share for the year.

For fiscal year 2016, the company continues to expect operating earnings of $3.45 to $3.85 per share.

On October 23, the company narrowed its guidance for fiscal year 2014 to $3.40 to $3.50 per share from prior guidance of $3.35 to $3.55 per share. Analysts expect earnings of $3.47 per share.

Also AEP raised its 2015 capital expenditure budget to $4.4 billion, and expects 2016 capital budget of $3.8 billion and 2017 capital investment budget of $3.9 billion.

The company plans to invest at least $4.8 billion in its transmission businesses over the next three years through AEP Transmission Holding Co and AEP's regulated utility operating companies.

"We remain focused on growing our core regulated businesses... At the same time, we continue to expand our process improvement initiatives to achieve sustainable cost savings in our operations. These actions will help us manage the revenue challenges presented by lagging economic recovery and the 2016 capacity market results," said Nicholas Akins, AEP's chief executive officer.

AEP is trading at $58.13, down $0.25 or 0.43%, on a volume of 736k shares on the NYSE.