American Electric Raises Guidance as Earnings Beat

   By Angela Chen 
 

American Electric Power Co. on Thursday raised its earnings guidance for the year, buoyed by better-than-expected earnings in the June quarter.

It now expects earnings per-share of $3.50 to $3.65, from its previous range of $3.40 to $3.60. Analysts had called for earnings of $3.54 a share.

"Although the level of industrial sales growth has moderated recently, we continue to see robust industrial sales growth from shale gas activity, including pipeline transportation infrastructure being built to support the Marcellus, Utica and Texas shale operations. As anticipated, new oil- and gas-related expansions are expected to come on line over the next 18 months," said Chief Executive Nicholas Akins.

The Ohio-based public utilities company also increased its capital investment plan by $200 million to $4.6 billion.

Overall, the company reported a profit of $430 million, or 88 cents a share, up from $390 million, or 80 cents a share, a year earlier. Revenue, however, fell to $3.9 billion from $4 billion.

Analysts had expected per-share earnings of 81 cents on revenue of $4.08 billion, according to Thomson Reuters.

Shares, inactive premarket, have declined about 9% this year.

Write to Angela Chen at [e-mail]

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