Capital Com MENA Securities Trading LLC is regulated by the Capital Market Authority.
Open platformOpen platform

American Electric Power Q3 revenue rises 13.7%, beats estimates

By Reuters News


Overview

  • US electric utility's Q3 revenue rose 13.65% yr/yr and beat analyst expectations

  • Q3 adjusted EPS beat analyst expectations

  • Company announced $100 bln five-year capital plan and raised long-term growth outlook


Outlook

  • Company expects 2026 operating EPS at or above high end of $6.25-$6.55 range

  • AEP forecasts 2027 operating EPS of $6.75-$7.05 and 2028 EPS of $7.40-$7.70

  • Company targets 9%-11% annual operating EPS growth for 2027-2031


Result Drivers

  • LARGE LOAD CONTRACTS - Co said new large customer contracts drove increased electricity demand and supported Q3 results

  • CAPITAL INVESTMENT - Co said expanded capital plan and investments in transmission, generation and distribution supported Q3 performance

  • FIXED COST OFFSETS - Co said fixed cost offsets from large customer contracts benefited residential customers and contributed to results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$6.83 bln

$6.55 bln (9 Analysts)

Q3 Adjusted EPS

Beat

$2.23

$2.05 (16 Analysts)

Q3 EPS

$2.18

Q3 Net Income

$1.19 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electric utilities peer group is "buy"

  • Wall Street's median 12-month price target for American Electric Power Company Inc is $143.82, about 10.4% above its October 27 closing price of $130.30

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Oct 27 - CenterPoint Energy Q3 adjusted EPS beats estimates, raises 2026 outlook

  • Oct 27 - CMS Energy Q3 adjusted EPS beats estimates

  • Oct 28 - NiSource Q3 profit beats; narrows 2026 adjusted EPS forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.