American Electric Power Company, Inc. (AEP), headquartered in Columbus, Ohio, generates, transmits, and distributes electricity for sale to retail and wholesale customers. With a market cap of $55.8 billion, the company operates approximately 225,000 circuit miles of distribution lines that delivers electricity to 5.6 million customers. The domestic electric utility company is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Tuesday, May 6.
Ahead of the event, analysts expect AEP to report a profit of $1.88 per share on a diluted basis, up 48% from $1.27 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect AEP to report EPS of $5.87, up 4.5% from $5.62 in fiscal 2024. Its EPS is expected to rise 7.2% year over year to $6.29 in fiscal 2026.
AEP stock has outperformed the S&P 500’s ($SPX) 5.5% gains over the past 52 weeks, with shares up 29.8% during this period. Similarly, it outperformed the Utilities Select Sector SPDR Fund’s (XLU) 21% gains over the same time frame.
AEP's strong performance can be linked to substantial growth in its commercial customer base, driven by economic expansion in key states like Indiana, Ohio, and Texas.
On Feb. 13, AEP shares closed down more than 1% after reporting its Q4 results. Its adjusted EPS of $1.24 matched Wall Street expectations. The company’s revenue was $4.7 billion, missing Wall Street forecasts of $5.1 billion. AEP expects full-year adjusted EPS in the range of $5.75 to $5.95.
Analysts’ consensus opinion on AEP stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, six advise a “Strong Buy” rating, 12 give a “Hold,” and one recommends a “Strong Sell.” While AEP currently trades above its mean price target of $105.67, the Street-high price target of $114 suggests an upside potential of 7%.
