American Electric Power Q1 Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Electric utility American Electric Power Co., Inc. (AEP) reported Friday a profit for the first quarter that surged from last year, reflecting strong double-digit revenue growth amid favorable weather and high power prices.

Both operating earnings per share and quarterly revenues topped analysts' expectations. The company also raised its operating earnings forecast for the full-year 2014, and reaffirmed operating earnings guidance for the full-year 2015 and 2016.

"Solid regulated business results and strong performance from our competitive energy businesses, bolstered by favorable weather and high power prices, resulted in a very positive first-quarter 2014 performance," Chairman, President and CEO Nicholas Akins said in a statement.

Columbus, Ohio-based American Electric reported net earnings of $560 million or $1.15 per share for the first quarter, higher than $363 million or $0.75 per share in the prior-year quarter, which included $0.05 per share of total charges.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.93 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $4.6 billion from $3.8 billion in the same quarter last year, and topped seven Wall Street analysts' consensus estimate of $4.04 billion.

"We experienced the coldest temperatures in 35 years during the first quarter, which led to strong residential and commercial demand for the period," Akins added.

Looking ahead to fiscal 2014, American Electric raised its operating earnings forecast to a range of $3.35 to $3.55 per share from the prior guidance in the range of $3.20 to $3.40 per share. Street is currently looking for full-year 2014 earnings of $3.36 per share.

The company also reaffirmed its guidance for 2015 operating earnings in the range of $3.30 to $3.60 per share and 2016 operating earnings forecast in the range of $3.45 to $3.85 per share. Analysts currently expects earnings of $3.48 for fiscal 2015.

AEP closed Thursday's regular trading session at $52.33, up $0.27 on a volume of 4.58 million shares.