Insights Ahead: American Electric Power's Quarterly Earnings

American Electric Power AEP will release its quarterly earnings report on Wednesday, 2024-11-06. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate American Electric Power to report an earnings per share (EPS) of $1.80.

Anticipation surrounds American Electric Power's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.02, leading to a 0.02% drop in the share price on the subsequent day.

Here's a look at American Electric Power's past performance and the resulting price change:

Performance of American Electric Power Shares

Shares of American Electric Power were trading at $98.4 as of November 04. Over the last 52-week period, shares are up 25.91%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on American Electric Power

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding American Electric Power.

The consensus rating for American Electric Power is Outperform, based on 12 analyst ratings. With an average one-year price target of $106.75, there's a potential 8.49% upside.

Comparing Ratings with Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of PG&E, Exelon and Xcel Energy, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for PG&E, with an average 1-year price target of $23.0, indicating a potential 76.63% downside.
• For Exelon, analysts project an Neutral trajectory, with an average 1-year price target of $43.33, indicating a potential 55.97% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Xcel Energy, with an average 1-year price target of $69.45, implying a potential 29.42% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for PG&E, Exelon and Xcel Energy, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

American Electric Power ranks highest in revenue growth among its peers. It has the lowest gross profit and return on equity compared to its peers.

Get to Know American Electric Power Better

American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.

Financial Insights: American Electric Power

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining American Electric Power's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.73% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Utilities sector.

Net Margin: American Electric Power's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 7.43%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.31%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): American Electric Power's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.34%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: American Electric Power's debt-to-equity ratio surpasses industry norms, standing at 1.7. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for American Electric Power visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.