American Electric Power (NASDAQ:AEP) Releases Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Key Points

• AEP missed second-quarter earnings estimates: Operating EPS fell to $1.36 from $1.43 a year earlier, coming in $0.12 below consensus, despite revenue increasing 7% year over year.
• The company raised its 2026 guidance to $6.25–$6.55 per share and cited strong demand from data centers and other large customers, with contracted load additions reaching 69 gigawatts through 2030.
• AEP outlined significant growth and financing plans, including a $78 billion 2026–2030 capital program, 13 gigawatts of secured turbine capacity, a $3 billion equity transaction and a DOE loan guarantee of up to $3.3 billion.

American Electric Power (NASDAQ:AEP - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.12), Zacks reports. American Electric Power had a return on equity of 10.21% and a net margin of 16.29%.During the same quarter in the prior year, the business earned $1.43 earnings per share. The company's revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power updated its FY 2026 guidance to 6.250-6.550 EPS.

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

• AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share from $6.15–$6.45, while reaffirming 7%–9% annual earnings growth and an operating EPS CAGR above 9% through 2030.
• Contracted large-load additions increased by 6 gigawatts to 69 gigawatts through 2030, including 45 gigawatts in Texas, supported by executed agreements and nearly $2 billion of customer cash or collateral commitments.
• AEP continues to expand its long-term investment pipeline, with a $78 billion 2026–2030 capital plan, approximately 11% rate-base CAGR, 13 gigawatts of secured turbine capacity, and more than $10 billion of potential incremental investments.
• The company completed a $3 billion marketed equity transaction to address anticipated financing needs for its base capital plan and secured a DOE loan guarantee of up to $3.3 billion, which AEP expects will generate approximately $685 million in customer savings.
• Second-quarter operating earnings declined to $1.36 per share from $1.43 a year earlier, reflecting the 2025 transmission minority-interest sale, tax timing items, prior-year favorable weather, and higher reliability-related O&M spending; management also acknowledged that ERCOT reviews and transmission or generation availability could delay some load interconnections.

American Electric Power Stock Performance

AEP traded down $1.86 during mid-day trading on Thursday, reaching $127.54. 3,169,660 shares of the company traded hands, compared to its average volume of 4,048,651. The company's fifty day moving average price is $131.91 and its 200-day moving average price is $129.69. The stock has a market capitalization of $69.40 billion, a P/E ratio of 18.73, a P/E/G ratio of 2.39 and a beta of 0.52. The company has a quick ratio of 0.39, a current ratio of 0.53 and a debt-to-equity ratio of 1.42. American Electric Power has a 52-week low of $105.70 and a 52-week high of $140.58.

American Electric Power Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $0.95 per share. The ex-dividend date is Monday, August 10th. This represents a $3.80 dividend on an annualized basis and a yield of 3.0%. American Electric Power's dividend payout ratio is 55.80%.

Institutional Trading of American Electric Power

A number of hedge funds have recently bought and sold shares of the company. Transamerica Financial Advisors LLC boosted its position in American Electric Power by 35.8% in the fourth quarter. Transamerica Financial Advisors LLC now owns 353 shares of the company's stock worth $41,000 after purchasing an additional 93 shares during the last quarter. Sumitomo Life Insurance Co. increased its holdings in American Electric Power by 1.2% during the fourth quarter. Sumitomo Life Insurance Co. now owns 7,730 shares of the company's stock valued at $891,000 after buying an additional 94 shares during the last quarter. Wedbush Securities Inc. raised its position in American Electric Power by 0.4% in the fourth quarter. Wedbush Securities Inc. now owns 21,547 shares of the company's stock worth $2,485,000 after acquiring an additional 94 shares during the period. Heritage Wealth Advisors boosted its stake in shares of American Electric Power by 6.4% during the 4th quarter. Heritage Wealth Advisors now owns 1,588 shares of the company's stock worth $183,000 after acquiring an additional 95 shares during the last quarter. Finally, Rowlandmiller & PARTNERS.ADV boosted its stake in shares of American Electric Power by 8.3% during the 4th quarter. Rowlandmiller & PARTNERS.ADV now owns 1,308 shares of the company's stock worth $151,000 after acquiring an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 75.24% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have weighed in on AEP shares. LADENBURG THALM/SH SH decreased their target price on shares of American Electric Power from $148.00 to $143.00 and set a "buy" rating for the company in a research note on Thursday, June 18th. BMO Capital Markets cut their price target on American Electric Power from $141.00 to $139.00 and set a "market perform" rating on the stock in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. reduced their price objective on American Electric Power from $141.00 to $140.00 and set a "neutral" rating for the company in a research report on Friday, May 15th. TD Cowen lifted their price objective on American Electric Power from $141.00 to $148.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Finally, Scotiabank boosted their target price on American Electric Power from $131.00 to $140.00 and gave the stock a "sector perform" rating in a report on Wednesday, May 6th. Thirteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $141.71.

Key Stories Impacting American Electric Power

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: AEP raised its 2026 operating earnings guidance to $6.25-$6.55 per share, supported by robust demand from data centers and other large customers. The midpoint is above the company’s previous outlook and broadly in line with the current analyst consensus. American Electric Power lifts forecast as AI fuels electricity surge
• Positive Sentiment: The utility expanded expected new load additions to 69 gigawatts through 2030 and secured approximately 13 GW of gas-fired turbine capacity, positioning it to serve rising power demand. AEP also cited up to $16 billion in potential cost offsets from load growth and $1.4 billion in expected customer savings from federal financing programs. AEP Reports Second-Quarter 2026 Earnings, Raises Full-Year Guidance
• Neutral Sentiment: Second-quarter revenue increased 7% year over year, indicating continued business growth despite weaker profitability. The company reported operating earnings of $1.36 per share and GAAP earnings of $1.31 per share. American Electric's Q2 Earnings Lag Estimates, Revenues Increase Year Over Year
• Negative Sentiment: Operating EPS fell from $1.43 to $1.36 year over year and missed the $1.48-$1.49 analyst estimate. Management attributed pressure to tax timing and the impact of a prior transaction, making the earnings miss the main near-term drag on the stock. American Electric Power Misses Q2 Earnings Estimates

American Electric Power Company Profile

American Electric Power NASDAQ: AEP is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.

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