American Electric Power Q3 Profit Down, Adj. EPS Tops Estimates - Quick Facts

(RTTNews) - American Electric Power Co., Inc. (AEP) reported 2013 third-quarter earnings of $433 million or $0.89 per share, down from $487 million or $1.00 per share for third-quarter 2012.

Operating earnings, excluding special items, for third-quarter 2013 rose to $533 million or $1.10 per share, from $496 million or $1.02 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.

The latest-quarter operating earnings was $100 million or $0.21 per share higher than GAAP earnings. The difference was primarily due to $79 million net of tax impairment charge resulting from a Public Utility Commission of Texas order related to the inclusion of allowance for funds used during construction (AFUDC) in the cost cap on construction of the John W. Turk Jr. Plant. The difference also included a $21 million net of tax impairment charge due to a Kentucky Public Service Commission order associated primarily with the Big Sandy Plant scrubber project.

Revenue for the quarter was $4.2 billion, unchanged from last year. Seven analysts estimated revenues of $4.54 billion for the quarter.

"Our strong third-quarter 2013 results demonstrate our continued success in advancing our earnings growth strategy and give us the confidence to increase the midpoint of our 2013 operating earnings guidance…..AEP's Board of Directors also voted yesterday to increase our quarterly dividend by $0.01 to $0.50 per share, providing a dividend increase this year of nearly 4 percent for our shareholders," said Nicholas K. Akins, AEP president and chief executive officer.

AEP narrowed its operating earnings guidance range for 2013 to a range of $3.15 to $3.25 per share from $3.05 to $3.25 per share. Analysts expect the company to report earnings of $3.15 per share for fiscal 2013.