Valued at a market cap of $55.5 billion, American Electric Power Company, Inc. (AEP) is an electric public utility holding company based in Columbus, Ohio. It generates, transmits, and distributes electricity to retail and wholesale customers and also engages in wholesale energy trading and marketing business. The company is scheduled to announce its fiscal Q2 earnings for 2025 on Tuesday, Jul. 29.
Prior to this event, analysts project this utility company to report a profit of $1.23 per share, down 1.6% from $1.25 per share in the year-ago quarter. The company has a promising trajectory of consistently surpassing or meeting Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.54 per share in the previous quarter topped the consensus estimates by 10.8%.
For the full year, analysts expect AEP to report EPS of $5.86, up 4.3% from $5.62 in fiscal 2024. Its EPS is expected to further grow by 7.3% year-over-year to $6.29 in fiscal 2026.
AEP has surged 19.3% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 11.7% return and the Utilities Select Sector SPDR Fund’s (XLU) 18.3% uptick over the same time frame.
AEP delivered better-than-expected Q1 results on May 6, and its shares rose marginally in the following trading session. The company’s revenue came in at $5.5 billion, up 8.7% year-over-year and 2.2% ahead of the consensus estimates. Moreover, its operating EPS of $1.54 advanced 21.3% from the same period last year and topped Wall Street expectations by 10.8%. Looking ahead to fiscal 2025, the AEP reaffirmed its operating EPS guidance of $5.75 to $5.95, and maintained its long-term projected growth rate of 6% to 8%.
Wall Street analysts are moderately optimistic about AEP’s stock, with a "Moderate Buy" rating overall. Among 20 analysts covering the stock, six recommend "Strong Buy," one indicates a "Moderate Buy," 12 suggest "Hold,” and one advises a "Strong Sell” rating. The mean price target for AEP is $110.53, which indicates a 6.3% potential upside from the current levels.
