Earnings Alerts

American Electric Power (AEP) Earnings: 4Q EPS Meets Estimates and Strong Load Growth Projected

By February 13, 2025 No Comments
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  • American Electric Power‘s (AEP) Operating EPS for the 4th Quarter matched estimates at $1.24.
  • The company forecasts operating EPS for 2025 to be between $5.75 and $5.95, aligning with the estimate of $5.88.
  • AEP expects an 8-9% annual total retail load growth from 2025 to 2027, targeting over 20 gigawatts of new load by the end of the decade.
  • The 2025 operating earnings guidance range is reaffirmed at $5.75 to $5.95 per share, with a long-term EPS growth rate of 6% to 8%.
  • AEP’s financial strategy includes maintaining a Funds From Operations (FFO) to Debt target of 14% to 15%.
  • In 2024, significant commercial load growth was noted, driven by economic development in Indiana, Ohio, and Texas.
  • The company has filed for approval to generate 2.3 gigawatts of natural gas in PSO and SWEPCO, with active proposals for new generation in Appalachian Power, Indiana Michigan Power, and PSO.
  • Analyst consensus indicates 7 “buy” ratings, 13 “hold” ratings, and 1 “sell” rating for AEP.

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American Electric Power on Smartkarma

Analyst coverage of American Electric Power on Smartkarma shows a mix of sentiments from various experts. Baptista Research‘s analysis on “American Electric Power (AEP): An Analysis Of Its Capital Strategy” highlights AEP’s solid financial standing in key areas. The company’s third-quarter operating earnings of $1.85 per share demonstrate stable earnings primarily from its regulated utilities business.

Furthermore, Baptista Research‘s report titled “American Electric Power Company: 4 Reasons Why We Are Low On Optimism For The Stock! – Major Drivers” points out both positive highlights and areas of concern in AEP’s second-quarter 2024 results. Despite quarter earnings of $1.25 per share reflecting a 12% increase over the previous year, some reasons for low optimism were identified. Overall, these insights provide investors with a comprehensive view of AEP’s financial performance and strategic outlook.


A look at American Electric Power Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, American Electric Power Company, Inc. (AEP) shows a promising outlook for the long term. With a high dividend score of 4, investors can look forward to potential sustainable returns through dividend payments. The company also scores well in value and growth with scores of 3, indicating a good balance between stock price and growth potential. Momentum, rated at 3, suggests a steady upward trend in the company’s performance. However, AEP’s resilience score of 2 highlights some caution, indicating a potential vulnerability in adverse conditions.

American Electric Power Company, Inc. (AEP) is a reputable public utility holding company offering electric services across various states. Serving regions in Arkansas, Indiana, Kentucky, and more, AEP caters to a diverse customer base. With a focus on generation, transmission, and distribution of electricity, AEP plays a crucial role in providing essential services to its retail customers. Investors can take note of AEP’s positive dividend and growth scores, which hint at stability and potential for long-term growth in the company’s value and operations.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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