Electric utility company American Electric Power Co. Inc. (AEP) is slated to release financial results for its third-quarter before the market opens Thursday.
Like other utility companies, American Electric has also been hit hard by weak demand for power amid the severe economic crisis. The slowdown in residential and commercial real estate growth has also impacted the utility companies' steady profits.
According to the Energy Information Administration, total U.S. electricity consumption fell 1.6% in the 2008 and is forecast to decline by 3.3% in 2009, and then grow by 1.3% in 2010 as the improving economy leads to slowly recovering industrial sector electricity sales.
American Electric, one of the largest largest generators of electricity in the U.S., provides electricity to more than 5 million customers in 11 states. American Electric owns nearly 38,000 megawatts of generating capacity in the U.S, and also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.
For the third quarter, analysts polled by Thomson Reuters are expecting the company to post earnings of $0.85 per share on revenues of $4.23 billion. In the prior-year quarter, the company reported ongoing earnings of $0.93 per share on revenues of $4.2 billion.
In late July, American Electric Power reaffirmed its full year ongoing earnings guidance in a range of $2.75 - $3.05 per share, while the Street currently is looking for full-year 2009 earnings of $2.85 per share.
In the second quarter, the Columbus, Ohio-based American Electric reported higher profit that amounted to $316 million or $0.67 per share, compared to $281 million or $0.70 per share a year earlier, helped by improved rate structures and cost controls. However, quarterly revenues declined to $3.2 billion from $3.5 billion in the same quarter of last year.
Among other players in the field, Duke Energy Corp. (DUK) is scheduled to publish third-quarter results at 7:00am ET on October 30, as analysts are projecting earnings of $0.38 per share on revenues of $3.80 billion.
Another peer, Entergy Corp. (ETR) posted a decline in third-quarter profit that totaled $455.2 million or $2.32 per share, compared to $470.3 million or $2.41 per share in the prior-year quarter. On an operational basis, third quarter earnings were $470.7 million or $2.40 per share, down from $487.3 million or $2.50 per share in 2008. Total operating revenues fell 25.9% to $2.94 billion from $3.96 billion a year ago.
Yet another competitor, CenterPoint Energy Inc. (CNP) reported third-quarter net income of $114 million or $0.31 per share, a decline from $136 million or $0.39 per share in the previous year. Total revenue for the quarter dropped to $1.58 billion from $2.51 billion in the year-ago quarter. For fiscal 2009, the company continues to project earnings in the range of $1.05 - $1.15 per share.
American Electric shares, which have been trading between $24.00 and $34.34 in the past 52 weeks, closed Wednesday's trading session at $29.66.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.