American Electric Power Company, Inc. (AEP) Stock: Ticks Higher as Q1 Earnings Beat Expectations

TLDR

AEP stock rose 0.67% to $108.17 after beating Q1 2025 estimates Revenue climbed 9.3% year-over-year to $5.46 billion EPS jumped to $1.54, topping consensus by 10.79% Total energy sales exceeded analyst forecasts across key segments Year-to-date return hits 18.4%, outpacing the S&P 500’s decline

American Electric Power Company, Inc. (NASDAQ: AEP) shares edged up 0.67% to $108.17 in afternoon trading on May 6, after the utility giant delivered better-than-expected first-quarter results and reaffirmed its full-year guidance. The solid performance helped AEP extend its strong year-to-date return of 18.4%, well ahead of the broader S&P 500’s 4.7% decline.

American Electric Power Company, Inc. (AEP) 

Earnings and Revenue Beat Wall Street Forecasts

AEP reported revenue of $5.46 billion for the quarter ended March 2025, marking a 9.3% increase from a year ago and topping Wall Street’s estimate of $5.34 billion. Earnings per share came in at $1.54, up from $1.27 a year earlier and beating the consensus forecast of $1.39 by 10.79%.

The company’s total energy sales came in ahead of analyst expectations across multiple categories. Retail electric sales for vertically integrated utilities reached 23,934 GWh, above the 23,696 GWh estimated. Wholesale electric sales also surprised positively, with 4,791 GWh reported versus 3,900 GWh expected.

Strong Segment Performance Drives Growth

Operating earnings for AEP’s core businesses mostly beat analyst forecasts. Vertically integrated utilities generated $349.9 million in non-GAAP operating earnings, above the $340.9 million consensus. Transmission and distribution utilities posted $192.3 million, roughly in line with estimates.

AEP Transmission Holdco delivered a strong showing with $234.6 million in earnings, beating the $209.6 million projection. Generation and marketing also impressed with $76.3 million, nearly doubling the expected $42 million. Corporate and other segments reported a narrower loss of $29.8 million, compared to an expected $53.2 million loss.

Solid Returns Outpacing Market Benchmarks

AEP’s stock performance continues to stand out among utility peers and the broader market. Its 26.5% one-year return easily surpasses the S&P 500’s 8.2% gain over the same period. Over five years, AEP shares have returned 64.9%, though still trailing the index’s 96.8% rise.

Investors are also eyeing the company’s dividend, with a forward yield of 3.46% and an ex-dividend date of May 9, 2025.

Earnings Date and Outlook

The company reported its first-quarter 2025 earnings today, May 6. Management reaffirmed its full-year guidance, underscoring confidence in continued growth as energy sales remain robust.

With solid earnings beats and consistent energy demand, AEP appears well-positioned to sustain its upward stock momentum, even as broader markets remain volatile.

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