American Electric Power (NASDAQ:AEP – Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $2.23 earnings per share for the quarter, topping analysts’ consensus estimates of $2.04 by $0.19, Zacks reports. American Electric Power had a net margin of 14.21% and a return on equity of 10.52%. The business had revenue of $6.83 billion during the quarter, compared to analyst estimates of $6.55 billion. During the same period in the prior year, the business posted $1.80 earnings per share. The company’s revenue was up 13.7% on a year-over-year basis.
Here are the key takeaways from American Electric Power’s conference call:
- Raised growth outlook: AEP introduced 2027–2028 operating EPS guidance of $6.75–$7.05 and $7.40–$7.70, respectively, and increased its expected 2027–2031 annual EPS growth rate to 9%–11% from 7%–9%.
- AEP reported third-quarter operating EPS of $2.23, up from $1.80 year over year, and now expects 2026 earnings to reach or exceed the high end of its $6.25–$6.55 guidance range.
- The company unveiled a $100 billion five-year capital plan through 2031, which is expected to nearly double rate base to $162 billion, supported by 84 GW of contracted incremental load and significant transmission and generation investment opportunities.
- AEP expects to fund the expansion with approximately $5.2 billion of incremental equity, including $2.5 billion of marketed growth equity over the next two years, while dividend growth is expected to remain modest at roughly 2% annually.
- Management characterized Texas as a major source of future upside because much of the infrastructure needed for its contracted load is not yet included in the plan, but the timing and scope remain dependent on ERCOT’s Batch Zero review and broader transmission-planning processes.
American Electric Power Stock Performance
NASDAQ AEP traded up $0.87 on Friday, reaching $130.21. 4,593,647 shares of the stock were exchanged, compared to its average volume of 3,409,830. The company has a current ratio of 0.51, a quick ratio of 0.40 and a debt-to-equity ratio of 1.46. American Electric Power has a one year low of $112.54 and a one year high of $140.58. The firm has a market capitalization of $70.90 billion, a PE ratio of 21.04, a PEG ratio of 2.68 and a beta of 0.46. The company’s 50-day simple moving average is $123.35 and its two-hundred day simple moving average is $127.93.
American Electric Power Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $0.97 dividend. This represents a $3.88 annualized dividend and a yield of 3.0%. This is a boost from American Electric Power’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Tuesday, November 10th. American Electric Power’s dividend payout ratio is presently 61.39%.
Wall Street Analysts Forecast Growth
Several research analysts recently weighed in on AEP shares. HSBC assumed coverage on American Electric Power in a research note on Thursday, October 22nd. They set a “buy” rating and a $145.90 target price for the company. Mizuho dropped their target price on American Electric Power from $141.00 to $135.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. BTIG Research restated a “buy” rating and issued a $153.00 target price on shares of American Electric Power in a report on Thursday. Citigroup cut their price target on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of American Electric Power in a research note on Thursday, August 27th. Sixteen research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $139.00.
Check Out Our Latest Stock Report on AEP
Insider Buying and Selling
In other American Electric Power news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total value of $250,000.00. Following the sale, the chief accounting officer owned 15,856 shares of the company’s stock, valued at $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.05% of the company’s stock.
Key Headlines Impacting American Electric Power
Here are the key news stories impacting American Electric Power this week:
- Positive Sentiment: AEP reported third-quarter earnings of $2.23 per share, above the $2.04 analyst consensus, while revenue reached $6.83 billion versus expectations of $6.55 billion. Revenue increased 13.7% year over year. AEP Third-Quarter Earnings Results
- Positive Sentiment: The utility raised its long-term operating earnings growth outlook to 9%-11% annually for 2027-2031, backed by a five-year capital plan totaling approximately $100 billion. AEP Growth Outlook and Capital Plan
- Positive Sentiment: AEP is increasing planned investment in generation and transmission by 30% to capitalize on large-load growth, including data-center demand. Management cited 84 gigawatts of contracted load, improving visibility into future electricity sales. AEP Investment Plan Increase
- Positive Sentiment: Analysts responded favorably: Wells Fargo raised its price target to $149 with an overweight rating, while BMO Capital increased its target to $137. Jacobs was also selected to advance AEP’s transmission modernization program. Wells Fargo AEP Rating
- Neutral Sentiment: West Virginia’s push to attract data centers could create additional demand for AEP’s power-generation and transmission assets, although the broader regulatory and political debate around data centers remains a consideration. West Virginia Data-Center Development
- Negative Sentiment: Despite the earnings beat, coverage noted tighter margins, and Mizuho maintained a neutral rating. The scale of AEP’s capital program also increases financing, execution and regulatory risks. AEP Margins and Earnings Reaction
American Electric Power Company Profile
American Electric Power (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.
AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
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