American Electric Power Q3: EPS Beat, Revenue Miss, 10% Commercial Load Jump & More
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2024
0mins
Should l Buy AEP?
Source: Benzinga
Quarterly Performance: American Electric Power Company reported third-quarter revenue of $5.42 billion, slightly below expectations, but adjusted operating earnings rose to $985.4 million, with adjusted EPS of $1.85 exceeding the consensus.
Future Outlook: The company has narrowed its FY24 adjusted EPS guidance and expects long-term growth of 6% to 8%, supported by a $54 billion capital investment plan over the next five years.
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Analyst Views on AEP
Wall Street analysts forecast AEP stock price to rise
9 Analyst Rating
5 Buy
3 Hold
1 Sell
Moderate Buy
Current: 126.430
Low
110.00
Averages
127.78
High
140.00
Current: 126.430
Low
110.00
Averages
127.78
High
140.00
About AEP
American Electric Power Company, Inc. is an electric public utility holding company. Its electric utility operating companies provide generation, transmission and distribution services to more than five million retail customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. Its segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco and Generation & Marketing. The Vertically Integrated Utilities is engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. The Transmission and Distribution Utilities consists of the transmission and distribution of electricity for sale to retail and wholesale customers. The AEP Transmission Holdco is engaged in development, construction and operation of transmission facilities. The Generation & Marketing segment conducts Marketing, risk management and retail activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Project Approval: PJM Interconnection has approved a major electric transmission project developed by Transource Energy and FirstEnergy Transmission to meet the rising electricity demand in the fast-growing Columbus region, which is expected to boost local economic growth.
- Infrastructure Investment: The project will include approximately 300 miles of new 765-kilovolt power lines and upgrades to several substations, significantly enhancing service reliability; a single 765-kV line can power two million homes while reducing land use and minimizing environmental impact.
- Strategic Collaboration: Transource and FirstEnergy are collaborating through the newly formed Grid Growth Ventures, leveraging their combined expertise and resources to deliver comprehensive and cost-effective solutions to meet emerging demands from manufacturing facilities, data centers, and electric vehicles.
- Future Development Commitment: AEP plans to invest $72 billion from 2026 to 2030 to enhance services and support the growing energy needs of communities, further solidifying its leadership position in the electric transmission sector.
See More
Ohio Transmission Project Enhances Grid Capacity
- Project Approval: PJM Interconnection approved a major electric transmission project on February 12, developed jointly by FirstEnergy Transmission and Transource Energy, aimed at meeting the growing electricity demand in the Columbus region and supporting economic growth.
- Infrastructure Upgrade: The project will include over 300 miles of new 765-kilovolt lines and upgrades to several substations, significantly enhancing service reliability and expected to provide enough power for two million homes in the region.
- Environmental Impact Reduction: By consolidating power in a single corridor, the 765-kilovolt lines will cut land use in half, thereby reducing impacts on the local environment while providing essential power support for emerging manufacturing facilities, data centers, and electric vehicles.
- Strategic Collaboration Benefits: The partnership between FirstEnergy and Transource leverages their respective expertise to deliver smarter solutions to meet regional power capacity needs, aligning with the Federal Energy Regulatory Commission's encouragement of efficient regional transmission development.
See More
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- Project Approval: PJM Interconnection has approved a major electric transmission project developed jointly by Transource Energy and FirstEnergy Transmission, aimed at meeting the growing electricity demand in the Columbus region of Ohio, which is expected to significantly enhance the area's economic growth potential.
- Infrastructure Upgrades: The project will involve the construction of approximately 300 miles of new 765-kilovolt power lines and upgrades to several substations, which are anticipated to improve service reliability, attract new businesses, and support the expansion of energy-intensive industries.
- Environmental Impact Reduction: By consolidating power in a single corridor, the 765-kV lines will cut land use in half, thereby reducing impacts on the local environment, while one 765-kV line can power the equivalent of two million homes.
- Strategic Collaboration Benefits: The joint development by Transource and FirstEnergy leverages their respective strengths in response to the Federal Energy Regulatory Commission's encouragement of efficient regional transmission development, which is expected to provide robust energy infrastructure support for future business development and community prosperity.
See More
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- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
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- Utilities Sector Performance: The utilities sector in the S&P 500 has shown remarkable performance in 2026, rising over 2% on Friday, marking its longest winning streak since July 2024, indicating strong market confidence.
- American Electric Power Earnings: American Electric Power reported adjusted earnings of $1.19 per share for Q4, exceeding the market expectation of $1.15, with revenue of $5.31 billion, showcasing effective execution under new management and growth potential.
- Entergy's Outlook: Entergy's adjusted earnings came in at 51 cents per share for Q4, slightly below expectations, yet its 2026 guidance indicates robust growth prospects with an 8% CAGR for retail sales, reflecting a conservative approach to new projects.
- Analyst Ratings Optimistic: Analysts are generally bullish on both American Electric Power and Entergy, with 10 out of 24 analysts rating AEP as buy or strong buy, and 19 out of 25 analysts giving similar ratings to Entergy, reflecting strong confidence in utility stocks.
See More
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- Sentiment Shift: The CNN Money Fear & Greed Index dropped to 36.9 on Thursday, entering the 'Fear' zone from a previous reading of 48.4, indicating a significant deterioration in investor sentiment that could lead to further declines in the stock market.
- Weak Market Performance: U.S. stocks closed lower on Thursday, with the Nasdaq Composite falling 2% and the Dow Jones dropping around 669 points to 49,451.98, reflecting concerns over economic outlook, particularly in the technology, energy, and financial sectors.
- Jobless Claims Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000 in the first week of February, although below market expectations of 222,000, indicating underlying weakness in the labor market that could impact consumer confidence and spending.
- Sector Performance Divergence: While most S&P 500 sectors closed negatively, utilities and consumer staples stocks rose, suggesting that investors are seeking defensive investments in uncertain market conditions, which may influence future capital flows.
See More
