With a market cap of $52.4 billion, American Electric Power Company, Inc. (AEP) is a leading electric utility holding company. Serving over 5.5 million customers across 11 states, it is one of the nation’s largest integrated utilities in the U.S., utilizing a diverse energy mix that includes coal, natural gas, renewables, and nuclear. The Columbus, Ohio-based company is expected to unveil its fiscal Q3 earnings results before the market opens on Wednesday, Nov. 6.
Before the event, analysts anticipated the utility company to report a profit of $1.78 per share, marginally up from $1.77 per share in the same quarter last year. The company has surpassed Wall Street's earnings projections in two of the past four quarters while missing on two other occasions. AEP exceeded the consensus estimate by a margin of 1.6% in the most recent quarter.
For fiscal 2024, analysts expect AEP to report EPS of $5.60, up 6.7% from $5.25 in fiscal 2023.
Over the past 52 weeks, AEP's shares have rallied nearly 33%, underperforming the broader S&P 500 Index's ($SPX) 36.8% gain and the Utilities Select Sector SPDR Fund's (XLU) 38.2% increase over the same period.
Shares of American Electric Power rose 1.1% on Jul. 30, primarily due to the company reporting stronger-than-expected Q2 operating earnings of $1.25 per share. The significant increase in commercial load, driven by the demand from new data centers, underscored AEP's robust growth potential, with commitments for over 15 gigawatts of incremental load by the decade's end. Additionally, the company reaffirmed its 2024 operating earnings guidance of $5.53 to $5.73 per share, boosting investor confidence in its financial stability and long-term growth prospects.
Analysts' consensus rating on American Electric Power stock is cautiously optimistic, with a "Moderate Buy" overall rating. Out of 19 analysts covering the stock, opinions include six "Strong Buys," one "Moderate Buy," 11 "Holds," and one "Moderate Sell." As of writing, AEP is trading below the average analyst price target of $103.70.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
