Insights Ahead: American Electric Power's Quarterly Earnings
American Electric Power (NASDAQ:AEP) is preparing to release its quarterly earnings on Wednesday, 2025-07-30. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect American Electric Power to report an earnings per share (EPS) of $1.21.
Anticipation surrounds American Electric Power's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
Last quarter the company beat EPS by $0.14, which was followed by a 0.04% increase in the share price the next day.
Here's a look at American Electric Power's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.40 | 1.22 | 1.80 | 1.23 |
| EPS Actual | 1.54 | 1.24 | 1.85 | 1.25 |
| Price Change % | 0.0% | 1.0% | 0.0% | -0.0% |
Market Performance of American Electric Power's Stock
Shares of American Electric Power were trading at $107.95 as of July 28. Over the last 52-week period, shares are up 10.22%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on American Electric Power
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on American Electric Power.
The consensus rating for American Electric Power is Neutral, derived from 6 analyst ratings. An average one-year price target of $111.0 implies a potential 2.83% upside.
Analyzing Analyst Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Exelon, Xcel Energy and Entergy, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Exelon, with an average 1-year price target of $46.38, suggesting a potential 57.04% downside.
- Analysts currently favor an Neutral trajectory for Xcel Energy, with an average 1-year price target of $77.5, suggesting a potential 28.21% downside.
- Analysts currently favor an Outperform trajectory for Entergy, with an average 1-year price target of $89.57, suggesting a potential 17.03% downside.
Summary of Peers Analysis
The peer analysis summary presents essential metrics for Exelon, Xcel Energy and Entergy, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| American Electric Power | Neutral | 8.71% | $3.29B | 2.95% |
| Exelon | Neutral | 11.10% | $2.85B | 3.33% |
| Xcel Energy | Neutral | 7.04% | $1.69B | 2.46% |
| Entergy | Outperform | 1.87% | $1.45B | 2.38% |
Key Takeaway:
American Electric Power ranks in the middle for revenue growth among its peers. It is at the bottom for gross profit and return on equity.
Get to Know American Electric Power Better
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
A Deep Dive into American Electric Power's Financials
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: American Electric Power displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 8.71%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: American Electric Power's net margin is impressive, surpassing industry averages. With a net margin of 14.65%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): American Electric Power's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.95%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): American Electric Power's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.77%, the company may face hurdles in achieving optimal financial performance.
Debt Management: With a below-average debt-to-equity ratio of 1.72, American Electric Power adopts a prudent financial strategy, indicating a balanced approach to debt management.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
