COLUMBUS, Ohio - American Electric Power (NASDAQ:AEP) announced its second-quarter 2024 earnings, surpassing analyst expectations for adjusted earnings per share (EPS) but falling short on revenue.
The company reported an adjusted EPS of $1.25, marginally higher than the analyst estimate of $1.24. However, revenue for the quarter was $4.6 billion, below the consensus estimate of $4.74 billion.
The reported revenue represents a 4.5% increase from $4.4 billion in the second quarter of the previous year, indicating growth despite missing analyst projections. The company's GAAP earnings stood at $0.64 per share, a decline from $1.01 per share in the same quarter last year.
American Electric Power reaffirmed its full-year 2024 adjusted EPS guidance range of $5.53 to $5.73, with the midpoint of $5.63 slightly above the analyst consensus of $5.61. This guidance demonstrates the company's confidence in its ability to achieve growth in line with expectations.
According to Ben Fowke, interim chief executive officer and president, the company's strong performance is attributed to investments in a modern energy system and efficient business management. Fowke highlighted the significant growth in the commercial customer class, driven by a 12.4% increase in commercial load compared to the same quarter last year. This growth was largely due to more than 20% gains at the Transmission & Distribution companies, as new data processing facilities became operational.
Fowke also noted the company's ongoing transformation of its generation fleet, with plans to add over 20 gigawatts of new resources in the next decade. He mentioned the voluntary workforce reduction program initiated in the second quarter, which saw approximately 1,000 employees participate, as a measure to address inflationary pressures.
The company's future outlook remains positive, with over 15 gigawatts of incremental load committed by customers by the end of the decade and active requests for proposals to modernize its generation fleet.
American Electric Power's reaffirmed guidance reflects its strategic investments and operational efficiency, positioning the company for continued growth and value creation for its stakeholders.
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