Group 1: Earnings Performance - American Electric Power (AEP) reported quarterly earnings of $1.24 per share, matching the Zacks Consensus Estimate and showing a slight increase from $1.23 per share a year ago [1] - AEP's revenues for the quarter ended December 2024 were $4.7 billion, which missed the Zacks Consensus Estimate by 7.49%, but represented a year-over-year increase from $4.6 billion [2] - Over the last four quarters, AEP has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2][3] Group 2: Stock Performance and Outlook - AEP shares have increased approximately 11% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The future performance of AEP's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $5.16 billion, and for the current fiscal year, it is $5.87 on revenues of $20.64 billion [7] Group 3: Industry Context - The Utility - Electric Power industry, to which AEP belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AEP's stock performance [5][6]

Financial Performance - Fourth-quarter 2024 GAAP earnings were $664 million or $1.25 per share, a 97.0% increase from $336 million or $0.64 per share in fourth-quarter 2023[3] - Year-end 2024 GAAP earnings reached $2.97 billion or $5.60 per share, compared to $2.21 billion or $4.26 per share for year-end 2023, representing a 34.4% increase[4] - Operating earnings for fourth-quarter 2024 were $660 million or $1.24 per share, slightly up from $647 million or $1.23 per share in fourth-quarter 2023[3] - AEP's revenue for fourth-quarter 2024 was $4.70 billion, an increase of 2.6% from $4.58 billion in fourth-quarter 2023[12] - GAAP earnings for Q4 2024 were $664.1 million, resulting in an EPS of $1.25, compared to $336.2 million and an EPS of $0.64 in Q4 2023[28][31] - Operating earnings (non-GAAP) for Q4 2024 were $660.1 million, with an EPS of $1.24, compared to $646.9 million and an EPS of $1.23 in Q4 2023[28][31] - GAAP earnings for year-to-date 2024 reached $2,967.1 million, with an EPS of $5.60, compared to $2,208.1 million and an EPS of $4.26 in 2023, reflecting a significant increase[35][37] - Operating earnings (non-GAAP) for 2024 were $2,977.9 million, translating to an EPS of $5.62, up from $2,724.5 million and an EPS of $5.25 in 2023, indicating a growth of approximately 9.3%[35][37] - Adjustments to GAAP earnings for 2024 totaled $10.8 million, while in 2023, adjustments amounted to $516.4 million, indicating a significant reduction in adjustments year-over-year[35][37] Sales and Load Growth - Total retail electric sales increased by 0.6% to 21,721 million KWh in Q4 2024, while wholesale electric sales surged by 30.7% to 3,636 million KWh[34] - AEP's total retail electric sales in transmission and distribution utilities increased by 10.0% to 22,153 million KWh in Q4 2024[34] - Total retail electric sales for vertically integrated utilities increased by 2.0% in 2024, totaling 91,956 million KWh, compared to 90,148 million KWh in 2023[39] - Wholesale electric sales for vertically integrated utilities rose by 8.4% in 2024, reaching 14,523 million KWh, compared to 13,401 million KWh in 2023[39] - Retail electric sales for transmission and distribution utilities increased by 8.6% in 2024, totaling 91,039 million KWh, compared to 83,834 million KWh in 2023[39] - Commercial load grew by 10.6% in 2024, driven by economic development in AEP's service territory[5] - The company anticipates 8-9% annual total retail load growth from 2025-2027, expecting to serve over 20 gigawatts of new load by the end of the decade[5] Segments and Adjustments - The vertically integrated utilities segment reported GAAP earnings of $255.2 million in Q4 2024, a significant increase from $38.8 million in Q4 2023[28][31] - The transmission and distribution utilities segment saw a GAAP earnings increase to $183.4 million in Q4 2024 from $190.3 million in Q4 2023[28][31] - The corporate and other segment reported a GAAP loss of $(3.7) million in Q4 2024, an improvement from a loss of $(48.0) million in Q4 2023[28][31] - The company incurred total adjustments to GAAP earnings of $(4.0) million in Q4 2024, compared to $310.7 million in adjustments in Q4 2023[28][31] Strategic Initiatives - AEP has filed for approval of 2.3 gigawatts of natural gas generation and is pursuing innovative solutions for large loads, including a partnership with Bloom Energy for fuel cells[7][8] - AEP's five-year capital plan totals $54 billion, with approximately two-thirds allocated to transmission and distribution systems to enhance reliability[5][9] - The company is focused on transitioning from fossil generation and expanding renewable generation capacity, which is critical for future growth[26] - The company is focusing on regulatory compliance and has incurred severance and pension settlement charges of $121.4 million in 2024[35] - AEP announced a $2.82 billion minority equity interest transaction to enhance financial flexibility and support economic growth in its states[10] Other Financial Impacts - The company reported a mark-to-market impact of commodity hedging activities resulting in a loss of $84.8 million for 2024, compared to a gain of $228.3 million in 2023[35][37] - The company experienced a provision for revenue refund associated with the Turk Plant, amounting to $116.5 million in 2024[35] - Residential retail electric sales in vertically integrated utilities decreased by 0.7% to 6,834 million KWh in Q4 2024, while commercial sales increased by 3.2%[34] - The residential retail electric sales for vertically integrated utilities increased by 2.4% in 2024, reaching 31,025 million KWh, compared to 30,290 million KWh in 2023[39]

Year-end 2024 GAAP earnings of $5.60 per share; operating earnings of $5.62 per share representing a 7% increase over prior year 2025 operating earnings (non-GAAP) guidance range reaffirmed at $5.75 to $5.95 per share with long-term EPS growth rate of 6% to 8% and FFO/Debt target of 14% to 15% Commercial load grew by 10.6% in 2024 driven by increased economic development in AEP's service territory Company well-positioned to execute historic five-year, $54 billion capital plan to benefit customers and drive ...

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American Electric Power Company, Inc (AEP) is slated to release fourth-quarter 2024 results on Feb. 13, before the market opens.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company delivered an earnings surprise of 3.93%. Moreover, American Electric has a trailing four-quarter average earnings surprise of 0.03%.Factors to Note Ahead of AEP’s Q4 Earnings Most of AEP’s service territories observed warmer-than-normal weather conditions in the fou ...

American Electric Power (AEP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 13, 2025, might help the stock move higher if these key numbers ar ...

COLUMBUS, Ohio, Feb. 3, 2025 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has been named to the JUST 100 list for the fifth year in a row. This ranking by JUST Capital recognizes America's best corporate citizens. AEP placed in the top 20 for the third year in a row and received second place in the utilities industry.The JUST 100 identifies companies that set the standard in commitment to their stakeholders. JUST Capital, in partnership with CNBC, assessed 940 of the nation's largest publicly trade ...

Market Response to AI Developments - The introduction of China's AI, DeepSeek, has led to a significant market reaction, particularly affecting AI stocks negatively while boosting sectors like REITs and utilities [1][2][4] - Major AI companies experienced substantial declines, with NVIDIA (NVDA) down 15.06%, Microsoft (MSFT) down 1.87%, and others following suit [3] Performance of REITs and Utilities - REITs, as indicated by the Vanguard REIT ETF (VNQ), saw an increase of 1.27%, while regulated electric utilities also performed well on the same day [5] - The performance of these sectors is attributed to their predictable cash flows and the relative safety they offer compared to the uncertainty surrounding AI investments [10][17] Known vs. Unknown Investment Dynamics - The market's shift towards REITs and utilities reflects a preference for known, stable returns (8%-10% expected returns) over the unpredictable nature of AI investments [9][10] - The allure of AI's potential returns diminished as new competitors like DeepSeek emerged, leading investors to reassess the attractiveness of more stable sectors [10][17] Bifurcation in the Utility Sector - The utility sector showed a stark performance difference, with regulated utilities performing well while independent power producers (IPPs) faced declines due to their uncertain earnings outlook [12][13] - Regulated utilities maintain predictable earnings growth, making them more appealing in light of the recent AI developments [13] REITs' Relationship with AI Stocks - REITs typically have an inverse relationship with AI stocks; when AI stocks rise, REITs tend to fall, and vice versa [16] - The DeepSeek news did not fundamentally impact REITs, as their earnings remain stable regardless of AI developments [16][17] Historical Context and Future Outlook - The analysis suggests that if AI excitement wanes, sectors like REITs and utilities may experience substantial outperformance, similar to trends observed after the tech bubble burst in 2000 [18]

iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.Cryptocurrencies are back in full force after taking a backseat to AI over the past year, and that means speculation is starting to run rampant again. For ex ...

COLUMBUS, Ohio, Jan. 21, 2025 /PRNewswire/ -- The Board of Directors of American Electric Power (Nasdaq: AEP) has declared a regular quarterly cash dividend of 93 cents per share on the company's common stock.The dividend is payable March 10, 2025, to shareholders of record as of Feb. 10, 2025, and is the company's 459th consecutive quarterly common stock cash dividend. AEP has paid a cash dividend on its common stock every quarter since July 1910.About AEPOur team at American Electric Power (Nasdaq: AEP) i ...