AEP plans to sell retail business, focus on regulated utilities
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American Electric Power (NASDAQ:AEP) stock wobbles between small gains and losses Thursday after reporting roughly in-line Q1 adjusted earnings and planning to launch a sale process for its retail and distributed resources businesses, as well as a strategic review of certain non-core transmission joint ventures.
Q1 net income fell to $397M, or $0.77/share, from $715M, or $1.41/share, in the year-earlier quarter, and revenues rose to $4.7B from $4.6B in the year-ago quarter.
AEP (AEP) said it has launched a sale process for its Energy retail and OnSite Partners distributed resources businesses, as well as its 50% share in the New Mexico renewable development joint venture.
The company also is reviewing certain non-core transmission joint ventures, including interests in Prairie Wind Transmission, Pioneer Transmission and Transource Energy to determine whether the businesses fit with its long-term plan.
AEP (AEP) reaffirmed full-year operating earnings guidance of $5.19-$5.39/share, in line with $5.27 analyst consensus estimate.
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