American Electric Power (NASDAQ:AEP) Issues Quarterly Earnings Results

American Electric Power (NASDAQ:AEP) posted its quarterly earnings results on Wednesday. The company reported $2.23 EPS for the quarter, topping the consensus estimate of $2.04 by $0.19, Zacks reports. The business had revenue of $6.83 billion during the quarter, compared to analyst estimates of $6.55 billion. The business’s revenue was up 13.7% on a year-over-year basis. During the same quarter last year, the firm earned $1.80 EPS.

Here are the key takeaways from American Electric Power’s conference call:

• Raised growth outlook: AEP introduced 2027–2028 operating EPS guidance of $6.75–$7.05 and $7.40–$7.70, respectively, and increased its expected 2027–2031 annual EPS growth rate to 9%–11% from 7%–9%.
• AEP reported third-quarter operating EPS of $2.23, up from $1.80 year over year, and now expects 2026 earnings to reach or exceed the high end of its $6.25–$6.55 guidance range.
• The company unveiled a $100 billion five-year capital plan through 2031, which is expected to nearly double rate base to $162 billion, supported by 84 GW of contracted incremental load and significant transmission and generation investment opportunities.
• AEP expects to fund the expansion with approximately $5.2 billion of incremental equity, including $2.5 billion of marketed growth equity over the next two years, while dividend growth is expected to remain modest at roughly 2% annually.
• Management characterized Texas as a major source of future upside because much of the infrastructure needed for its contracted load is not yet included in the plan, but the timing and scope remain dependent on ERCOT’s Batch Zero review and broader transmission-planning processes.

American Electric Power Stock Performance

NASDAQ AEP traded down $0.23 during trading hours on Wednesday, hitting $130.07. 1,678,878 shares of the company’s stock were exchanged, compared to its average volume of 3,931,411. The business’s 50 day moving average is $123.16 and its 200-day moving average is $127.74. American Electric Power has a 12-month low of $112.54 and a 12-month high of $140.58.

American Electric Power Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be paid a dividend of $0.97 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $3.88 dividend on an annualized basis and a dividend yield of 3.0%. This is a boost from American Electric Power’s previous quarterly dividend of $0.95.

Insider Buying and Selling

In other news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $250,000.00. Following the completion of the sale, the chief accounting officer directly owned 15,856 shares of the company’s stock, valued at $1,982,000. The trade was a 11.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.05% of the company’s stock.

Wall Street Analyst Weigh In

AEP has been the topic of a number of analyst reports. Barclays reduced their price objective on shares of American Electric Power from $129.00 to $120.00 and set an “equal weight” rating on the stock in a report on Monday, October 12th. BTIG Research raised American Electric Power from a “neutral” rating to a “buy” rating and set a $147.00 price target for the company in a report on Tuesday, October 20th. Truist Financial cut their target price on American Electric Power from $146.00 to $139.00 and set a “buy” rating on the stock in a research report on Monday, August 17th. Scotiabank dropped their target price on shares of American Electric Power from $140.00 to $131.00 and set a “sector perform” rating on the stock in a research report on Wednesday, September 30th. Finally, Citigroup reduced their target price on American Electric Power from $148.00 to $142.00 and set a “neutral” rating for the company in a report on Wednesday, August 5th. Sixteen research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, American Electric Power presently has a consensus rating of “Moderate Buy” and an average price target of $138.70.

About American Electric Power

American Electric Power (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.

AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.