American Electric Power Q4 Results Miss View; Names Benjamin Fowke Interim CEO

(RTTNews) - American Electric Power (AEP) reported fourth-quarter 2023 earnings of $336.2 million or $0.64 per share, down from $384.3 million or $0.75 per share in fourth-quarter 2022.

Operating earnings for fourth-quarter 2023 were $646.9 million or $1.23 per share, compared to $540.1 million or $1.05 per share in fourth-quarter 2022. Analysts polled by Thomson Reuters expected the company to report earnings of $1.26 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Revenue declined to $4.6 billion from $4.9 billion in the prior year. Analysts expected revenue of $5.12 billion for the quarter.

AEP reaffirmed its 2024 operating earnings guidance range of $5.53 to $5.73 per share. Analysts expect annual earnings of $5.60 per share.

AEP said it has advanced strategic initiatives including de-risking the business, controlling costs and investing in a modern and reliable grid to benefit customers.

In a separate release, AEP announced that Benjamin Fowke III, a member of the company's Board of Directors and the former chairman and CEO of Xcel Energy, Inc., has been appointed interim chief executive officer and president, effective immediately.

AEP noted that Fowke succeeds Julie Sloat.The Board determined, based on discussions with Sloat, that it is time to identify a new CEO to lead the company's next chapter. This decision was not a result of any disagreement with Sloat regarding AEP's operations, policies or financial performance, and was not made for cause or related to any ethical or compliance concern.

In addition, the company has appointed its lead director, Sara Martinez Tucker, as chair. The Board also has engaged a leading executive search firm to conduct an external search for a permanent CEO.

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