American Electric Power Q3 revenue rises 13.7%, beats estimates
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
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(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.)