Core Insights - American Electric Power (AEP) reported $4.7 billion in revenue for Q4 2024, a year-over-year increase of 2.1%, but fell short of the Zacks Consensus Estimate by 7.49% [1] - The company's EPS for the same period was $1.24, matching the consensus estimate, indicating no EPS surprise [1] Financial Performance Metrics - Total Energy Sales for Retail Electric - Transmission & Distribution Utilities reached 22,153 GWh, exceeding the average estimate of 21,512.62 GWh [4] - Total Energy Sales for Retail Electric - Vertically Integrated Utilities was 21,721 GWh, slightly below the average estimate of 22,020.43 GWh [4] - Total Energy Sales for Wholesale Electric - Transmission & Distribution Utilities was 667 GWh, surpassing the average estimate of 600.36 GWh [4] - Total Energy Sales for Transmission & Distribution Utilities totaled 22,820 GWh, above the average estimate of 22,112.98 GWh [4] - Total Energy Sales for Wholesale Electric - Vertically Integrated Utilities was 3,636 GWh, significantly higher than the average estimate of 2,658.96 GWh [4] - Total Energy Sales for Vertically Integrated Utilities reached 25,357 GWh, exceeding the average estimate of 24,679.39 GWh [4] Operating Earnings - Operating Earnings (non-GAAP) for Vertically Integrated Utilities were $275.50 million, below the average estimate of $330.13 million [4] - Operating Earnings (non-GAAP) for Transmission & Distribution Utilities were $191.30 million, compared to the average estimate of $276.64 million [4] - Operating Earnings (non-GAAP) for AEP Transmission Holdco were $166.30 million, slightly below the average estimate of $175.04 million [4] - Operating Earnings (non-GAAP) for Generation & Marketing were $30.20 million, significantly lower than the average estimate of $81.13 million [4] - Operating Earnings (non-GAAP) for Corporate and Other were -$3.20 million, better than the average estimate of -$198.68 million [4] - Operating Earnings (GAAP) for Vertically Integrated Utilities were $255.20 million, below the average estimate of $333.65 million [4] Stock Performance - AEP shares have returned +7.6% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - American Electric Power Company, Inc. reported a revenue of $17.1 billion for the fiscal year, representing a 5% increase compared to the previous year[7]. - The company achieved a net income of $3.1 billion, which is a 10% increase year-over-year[7]. - AEP's transmission and distribution segment reported a 6% increase in operating income, driven by infrastructure investments[7]. - The corporate federal income tax rate was reduced from 35% to 21% due to the Tax Cuts and Jobs Act, effective January 1, 2018, impacting financial performance[23]. - Operating expenses have been reduced by I%, contributing to an improved operating margin of J%[27]. - The company reported a total revenue of $X billion for the last quarter, representing a Y% increase year-over-year[20]. Customer Growth and Engagement - Customer accounts increased by 2% to approximately 5.5 million, indicating strong customer growth across its service areas[7]. - User data indicates a growth in active users to Z million, up from A million in the previous quarter, marking a B% increase[21]. Investment and Infrastructure - AEP plans to invest $38 billion over the next five years to enhance its infrastructure and expand renewable energy projects[7]. - The company has established a centralized funding mechanism, the Utility Money Pool, to meet short-term cash requirements of its utility subsidiaries[23]. - The company has secured K million in funding through various financial instruments to support ongoing projects and initiatives[28]. - AEP's capital expenditures for the year were approximately $7 billion, reflecting a commitment to growth and modernization[7]. Renewable Energy Initiatives - AEP's renewable energy capacity increased by 1,500 MW in the last year, contributing to a total of 10,000 MW of renewable generation[7]. - The company is focused on expanding its renewable energy portfolio, including large-scale projects backed by long-term contracts[19]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on renewable energy assets[7]. - The company reported a significant increase in wind generation capacity with the acquisition of Sundance, adding 199 MWs in Oklahoma[23]. - Investment in new technologies and product development has increased by D%, focusing on renewable energy solutions and efficiency improvements[23]. - The company has successfully completed the acquisition of E, adding F MW of renewable energy capacity to its portfolio[24]. Sustainability Goals - The company aims to achieve net-zero greenhouse gas emissions by 2045, aligning with its sustainability goals[21]. - The company has set a goal to achieve net-zero emissions by 2045, aligning with regulatory requirements and market trends[26]. Market Outlook and Strategy - The company anticipates continued growth in electric market demand, influenced by economic conditions and demographic patterns in its service territories[27]. - The company projects a revenue growth of C% for the upcoming fiscal year, driven by new product launches and market expansion strategies[22]. - Future outlook includes plans to expand into G markets, targeting an additional H million customers by 2025[25]. - The management highlighted the importance of adapting to changing market conditions and regulatory environments to sustain growth[29]. Risk Management - The company faces risks from extreme weather conditions and natural disasters that could significantly impact operational costs and recovery[27]. - The ability to recover unrecovered investments in generation units may be impacted by market volatility and changes in energy-related commodity prices[31]. - Changes in utility regulation and cost allocation within RTOs such as ERCOT, PJM, and SPP may affect financial performance[31]. - The company faces risks from changes in creditworthiness of counterparties in energy trading markets[31]. - Volatility in capital markets can impact the value of investments held by pension and trust funds, affecting future funding requirements[31]. - Unforeseen events such as cybersecurity threats and labor strikes may disrupt supply chains and operations[31]. Technological Advancements - The company is exploring new technologies, particularly in energy storage and alternative generation sources, to meet evolving customer demands[31]. - The company must navigate evolving customer and stakeholder expectations related to artificial intelligence and environmental concerns[31]. Communication and Reporting - Financial and important information is routinely posted on AEP's website, accessible to investors[29]. - AEP provides free access to its Annual Report on Form 10-K and quarterly reports on Form 10-Q through its website[30]. - The Registrants express no obligation to update forward-looking information except as required by law[28].

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 ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .When I started investing, I thought I always had to keep a large cash position to be perfectly positioned for the next crash. After all, if a crash were to happen, I would be sitting on the sidelines, smiling because I could deploy myAnalyst’s Disclosure: I/we have a beneficial ...

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]