American Electric Power (AEP) has reported a decrease in its fourth-quarter 2023 earnings from $384.3 million or $0.75 per share the previous year to $336.2 million or $0.64 per share. Similarly, the operating earnings for this quarter were $646.9 million or $1.23 per share, compared to $540.1 million or $1.05 per share in fourth-quarter 2022. Analyst predictions had slated the company's earnings at $1.26 per share for this quarter.
Revenue also saw a decline, moving from $4.9 billion to $4.6 billion - a fall short of the predicted revenue of $5.12 billion for the quarter. Despite these numbers, AEP has maintained its operating earnings guidance range for 2024 at $5.53 to $5.73 per share, close to analysts' annual earnings prediction of $5.60 per share.
AEP also disclosed its strategic steps towards business de-risking, cost containment and investing in a robust, modern grid for the benefit of customers.
Separately, AEP has appointed Benjamin Fowke III, the company's Board of Directors member and former Xcel Energy Inc.'s chairman and CEO, as its interim CEO and president, effective immediately. He succeeds Julie Sloat; a change that the board stated was necessary for introducing new leadership for the company's next phase. This decision was not caused by operational, policy disagreements, financial performance, ethics, or compliance issues with Sloat.
Sara Martinez Tucker, the lead director, has also been appointed as chair. Furthermore, the board has engaged a top executive search firm to find a permanent CEO.
