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

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

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 Down 0.5%

AEP traded down $0.71 during midday trading on Wednesday, reaching $129.59. The company had a trading volume of 2,022,353 shares, compared to its average volume of 3,933,864. The business has a 50-day moving average price of $123.16 and a two-hundred day moving average price of $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 announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a $0.97 dividend. This is a boost from American Electric Power’s previous quarterly dividend of $0.95. This represents a $3.88 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, November 10th.

Insider Activity at American Electric Power

In related news, CAO Kate Dixon sold 2,000 shares of American Electric Power stock in a transaction on Tuesday, September 8th. The stock was 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 owned 15,856 shares of the company’s stock, valued at approximately $1,982,000. This trade represents a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.05% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently commented on AEP. Wall Street Zen raised shares of American Electric Power from a “sell” rating to a “hold” rating in a research report on Saturday. Jefferies Financial Group decreased their price objective on American Electric Power from $148.00 to $145.00 and set a “buy” rating on the stock in a report on Thursday, October 22nd. TD Cowen reiterated a “buy” rating on shares of American Electric Power in a research report on Wednesday, September 9th. Barclays cut their price objective on shares of American Electric Power from $129.00 to $120.00 and set an “equal weight” rating for the company in a research report on Monday, October 12th. Finally, Truist Financial decreased their price target on American Electric Power from $146.00 to $139.00 and set a “buy” rating on the stock in a research note on Monday, August 17th. Sixteen equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price 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.