AEP Streamlining Business And Focusing On Regulated Operations To Benefit Customers, Reaffirms Long-Term Growth Rate Of 6%-7%; Sees 2023 Operating Earnings Guidance Range $5.24-$5.34/Share Vs $5.26 Est.; Sees 2024 Operating Earnings Guidance Range $5.53-$5.73/Share Vs $5.58 Est.
Portfolio Pulse from Benzinga Newsdesk
American Electric Power (AEP) is focusing on regulated operations and expects to generate value for customers and investors. AEP reaffirmed its 2023 operating earnings guidance range of $5.24 to $5.34 per share and announced a 2024 guidance range of $5.53 to $5.73 per share. The company also confirmed a long-term growth rate of 6%-7%. AEP's $43 billion capital investment plan over five years will prioritize transmission, distribution, and regulated renewables. The company completed the sale of its unregulated renewables portfolio and is progressing with the sale of other non-core businesses. AEP increased its quarterly dividend to 88 cents per share, aligning with its earnings growth and targeted payout ratio.
November 10, 2023 | 9:34 pm
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POSITIVE IMPACT
AEP is concentrating on regulated operations, expecting to deliver value to stakeholders with a reaffirmed 2023 earnings guidance and a new 2024 guidance. The company's significant investment in infrastructure and renewables, along with the sale of non-core assets and an increased dividend, signal a strong commitment to growth and shareholder returns.
The reaffirmation of earnings guidance and the announcement of future earnings growth are positive signals for investors, indicating stability and confidence in the company's operations. The strategic focus on regulated operations and the investment in infrastructure and renewables are likely to be viewed favorably by the market. The sale of non-core assets can be seen as a move to streamline operations and focus on core strengths, which could improve financial health. The increase in the dividend is a direct financial benefit to shareholders and supports the positive short-term impact on AEP's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100