Q3 Earnings Forecast for AEP Issued By KeyCorp

Key Points

• KeyCorp forecasts American Electric Power will report Q3 2026 earnings of $2.19 per share and Q4 earnings of $1.05 per share, versus full-year consensus estimates of $6.35 per share.
• Analyst sentiment remains broadly positive, with 13 Buy ratings and nine Holds, producing a “Moderate Buy” consensus and an average price target of $141.71. BMO Capital Markets was a notable exception, lowering its target to $139 and maintaining a Market Perform rating.
• AEP recently exceeded quarterly earnings expectations, reporting $1.64 per share versus the $1.57 consensus, while revenue rose 10.2% year over year to $6.02 billion. The company also declared a quarterly dividend of $0.95 per share, equivalent to a 2.8% yield.

American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) - Research analysts at KeyCorp issued their Q3 2026 earnings estimates for American Electric Power in a report released on Wednesday, July 22nd. KeyCorp analyst S. Karp anticipates that the company will post earnings of $2.19 per share for the quarter. The consensus estimate for American Electric Power's current full-year earnings is $6.35 per share. KeyCorp also issued estimates for American Electric Power's Q4 2026 earnings at $1.05 EPS.

A number of other analysts have also commented on AEP. Morgan Stanley lifted their target price on American Electric Power from $136.00 to $139.00 and gave the stock an "overweight" rating in a report on Wednesday. TD Cowen boosted their price objective on shares of American Electric Power from $141.00 to $148.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Jefferies Financial Group increased their target price on shares of American Electric Power from $147.00 to $154.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. The Goldman Sachs Group upped their target price on shares of American Electric Power from $141.00 to $142.00 and gave the stock a "buy" rating in a report on Wednesday, April 15th. Finally, BMO Capital Markets decreased their price target on American Electric Power from $141.00 to $139.00 and set a "market perform" rating on the stock in a report on Wednesday, July 22nd. Thirteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, American Electric Power has a consensus rating of "Moderate Buy" and an average price target of $141.71.

American Electric Power Price Performance

AEP opened at $135.54 on Monday. The firm has a market cap of $73.75 billion, a PE ratio of 19.90, a P/E/G ratio of 2.43 and a beta of 0.52. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.53 and a quick ratio of 0.39. American Electric Power has a 1 year low of $105.70 and a 1 year high of $140.58. The stock has a 50-day moving average price of $131.69 and a 200-day moving average price of $129.33.

American Electric Power (NASDAQ:AEP - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $1.64 earnings per share for the quarter, beating analysts' consensus estimates of $1.57 by $0.07. American Electric Power had a net margin of 16.29% and a return on equity of 10.21%. The business had revenue of $6.02 billion during the quarter, compared to the consensus estimate of $5.72 billion. During the same quarter last year, the firm earned $1.54 earnings per share. The business's revenue for the quarter was up 10.2% on a year-over-year basis. American Electric Power has set its FY 2026 guidance at 6.120-6.420 EPS.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Activest Wealth Management boosted its stake in American Electric Power by 72.2% during the fourth quarter. Activest Wealth Management now owns 217 shares of the company's stock valued at $25,000 after buying an additional 91 shares during the last quarter. Optima Capital LLC bought a new stake in American Electric Power in the 4th quarter worth approximately $26,000. Rakuten Securities Inc. raised its holdings in shares of American Electric Power by 7,300.0% during the 4th quarter. Rakuten Securities Inc. now owns 222 shares of the company's stock worth $26,000 after acquiring an additional 219 shares in the last quarter. Costello Asset Management INC raised its holdings in shares of American Electric Power by 100.0% during the 1st quarter. Costello Asset Management INC now owns 200 shares of the company's stock worth $26,000 after acquiring an additional 100 shares in the last quarter. Finally, Legacy Wealth Managment LLC ID raised its holdings in shares of American Electric Power by 200.0% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 231 shares of the company's stock worth $27,000 after acquiring an additional 154 shares in the last quarter. Institutional investors own 75.24% of the company's stock.

American Electric Power Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Monday, August 10th. American Electric Power's payout ratio is currently 55.80%.

Key Headlines Impacting American Electric Power

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

• Positive Sentiment: KeyCorp raised several forward EPS estimates for American Electric Power, including FY2026, FY2028, FY2029, and FY2030, signaling confidence in the company’s longer-term earnings growth.
• Positive Sentiment: Other coverage highlighted American Electric Power as one of the utilities names analysts are bullish on, and it was also featured as a defensive stock for stability, which can attract investors looking for lower-volatility holdings. Article Title Article Title
• Neutral Sentiment: KeyCorp’s Q2 estimate for AEP came in at $1.50 per share, while consensus full-year earnings remain around $6.35 per share; investors may be waiting for the company’s actual results next week to see whether it can meet or beat expectations. Article Title
• Neutral Sentiment: Short-interest data showed 0 shares short, so there is no meaningful bearish positioning signal from this report.
• Negative Sentiment: BMO Capital Markets issued a pessimistic outlook on AEP’s stock price, which may be tempering enthusiasm despite the broader bullish analyst tone. Article Title

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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