Core Viewpoint - American Electric Power Company, Inc. (AEP) is expected to report its first-quarter 2025 results on May 6, with earnings per share (EPS) estimates indicating a year-over-year rise of 9.5% and sales growth of 6.7% [1][6]. Factors Impacting AEP's Q1 Earnings - Mixed weather patterns during the January-March 2025 quarter are likely to have a moderate impact on AEP's overall top line, with below-normal temperatures increasing electricity demand for heating, while above-normal temperatures may have reduced demand [2]. - Positive factors such as favorable rate revisions, strong transmission revenues, data center demand, and higher normalized retail sales due to economic development in AEP's operating states are expected to enhance top-line performance [3]. - Adverse weather events, including snowstorms and floods, may have caused outages and infrastructure damage, potentially increasing operating expenses and negatively impacting earnings [4]. - Despite challenges, benefits from prior investments, strong rate base growth, and solid sales growth expectations are likely to support overall earnings [5]. Earnings Expectations - The Zacks Consensus Estimate for AEP's sales is $5.34 billion, reflecting a year-over-year growth of 6.7% [6]. - The Zacks Consensus Estimate for earnings is $1.39 per share, suggesting a year-over-year increase of 9.5% [6]. Earnings Prediction Model - AEP has an Earnings ESP of +0.54%, indicating a favorable outlook for an earnings beat [7]. - Currently, AEP holds a Zacks Rank of 3 (Hold), which suggests a stable position in the market [8].

Analysts on Wall Street project that American Electric Power (AEP) will announce quarterly earnings of $1.39 per share in its forthcoming report, representing an increase of 9.5% year over year. Revenues are projected to reach $5.34 billion, increasing 6.7% from the same quarter last year.The current level reflects an upward revision of 13.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial ...

Financial Data and Key Metrics Changes - For the full year 2024, the company reported operating earnings of $5.62 per share, continuing a trend of meeting or exceeding earnings per share guidance for over a decade [17] - The quarterly dividend was increased by $0.05 to $0.93 per share, with an operating earnings guidance range for 2025 set between $5.75 and $5.95 per share [17] - The company aims for a long-term operating earnings growth rate of 6% to 8%, combined with dividends to provide a potential total shareholder return of 10% to 12% [17] Business Line Data and Key Metrics Changes - The company plans to invest over $34 billion in transmission and distribution infrastructure to create a resilient grid [17] - An additional $14 billion is allocated for new diverse generation resources to balance reliability and affordability [17] - Commercial load growth increased by 10.6% last year, driven by data centers and reshoring of manufacturing [18] Market Data and Key Metrics Changes - The company anticipates an additional investment of up to $10 billion in infrastructure to support increased demand, driven by over 20 gigawatts of new load expected by the end of the decade [19] Company Strategy and Development Direction - The company is focused on building an energy system to support growing customer needs while emphasizing execution, accountability, and operational excellence [16] - The capital plan is seen as key to unlocking long-term value for shareholders, customers, and communities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the commitment of employees and the potential for significant achievements that benefit customers [19] - The company is working with regulators and large customers to ensure fair allocation of infrastructure costs [19] Other Important Information - The company has a historic five-year capital plan totaling $54 billion [17] - The independent registered public accounting firm PricewaterhouseCoopers LLP was ratified for 2025, with approximately 99% of votes in favor [25] Q&A Session Summary Question: Were there any questions submitted by shareholders? - No questions were received from shareholders during the meeting [22]

Company Overview - American Electric Power (AEP) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.39, reflecting a change of +9.5% [3] - Revenues are anticipated to reach $5.34 billion, which is a 6.7% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for May 6, 2025, and the stock price may rise if actual results exceed expectations [2] - Conversely, if results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has been revised 13.41% higher in the last 30 days, indicating a bullish sentiment among analysts [4] - AEP's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.54% [10][11] Historical Performance - In the last reported quarter, AEP met the expected EPS of $1.24, resulting in no surprise [12] - Over the past four quarters, AEP has beaten consensus EPS estimates two times [13] Industry Comparison - Southern Co. (SO), a competitor in the electric power industry, is expected to report an EPS of $1.20, showing a year-over-year change of +16.5% [17] - Southern Co.'s revenues are projected at $6.94 billion, up 4.4% from the previous year [17] - Southern Co. has an Earnings ESP of -0.08%, making it challenging to predict a beat on the consensus EPS estimate [18]

COLUMBUS, Ohio, April 29, 2025 /PRNewswire/ -- Joseph G. Sauvage, retired vice chairman and chairman of Global Power, Utilities and Renewables of Citigroup, today was elected to the American Electric Power (Nasdaq: AEP) Board of Directors. Sauvage led Citigroup's Global Power, Utilities and Renewables practice for more than 16 years. Prior to joining Citigroup, he held various investment banking roles at Lehman Brothers, including vice chairman and global head of Power, Utilities and Renewables. Sauvage ser ...

Core Viewpoint - The Zacks Utilities sector is expected to see a 13.2% increase in first-quarter 2025 earnings, driven by new electric, natural gas, and water rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - Four utilities, DTE Energy, American Electric Power, Exelon Corporation, and NiSource Inc., are identified as likely to exceed earnings expectations this reporting cycle due to positive Earnings ESP and favorable Zacks Ranks [2] - The Zacks Consensus Estimate for DTE Energy's first-quarter earnings is $1.91, reflecting a 14.4% increase year-over-year [9] - American Electric Power's first-quarter earnings estimate is $1.75, indicating a 37.8% increase from the previous year [11] - Exelon's first-quarter earnings per share estimate is 75 cents, representing an 8.7% year-over-year increase [13] - NiSource's first-quarter earnings estimate is 88 cents, showing a 3.5% increase from the year-ago figure [15] Group 2: Influencing Factors - Utility providers are benefiting from higher electricity rates, accretive acquisitions, cost reductions, and energy-efficiency programs [3] - The shift to renewable energy sources and improvements in electric infrastructure resilience are also contributing positively [3] - Economic improvements in service territories have increased demand for utility services, boosting revenues [5] - The rise of data centers, particularly those supporting AI, has significantly increased electricity consumption, benefiting utility revenues [5] - Lower capital servicing expenses due to a one percentage point reduction in the Fed's fund rate since September 2024 are expected to enhance margins and profitability for capital-intensive utilities [6] Group 3: Challenges - Severe storms in March 2025 caused power outages in some service regions, potentially leading to higher operating expenses for utilities [7] - DTE Energy's profitability may be impacted by severe storms in southeast Michigan, despite benefiting from rising demand from data centers [8] - American Electric Power also faced negative impacts on earnings due to power outages caused by severe storms in its service areas [10]

Group 1 - Quarterly financial reports are crucial for investors to assess company performance and future outlook, with earnings being a key metric [1] - The comparison of actual earnings results to bottom line expectations significantly impacts stock prices, making earnings surprises valuable for investors [2] - The Zacks Earnings ESP tool helps identify companies likely to exceed earnings estimates by focusing on the most recent analyst revisions [3][4] Group 2 - The Zacks Expected Surprise Prediction (ESP) calculates the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, providing a percentage figure that indicates potential earnings surprises [4] - Stocks with a positive earnings ESP and a Zacks Rank of 3 (Hold) or better have historically shown a 70% chance of a positive earnings surprise, yielding an average annual return of approximately 28% over the past decade [5] - Stocks ranked 2 (Buy) and 1 (Strong Buy) are expected to outperform the market, with Strong Buy stocks showing the highest potential for outperformance [6] Group 3 - NextEra Energy (NEE) currently holds a 3 (Hold) ranking, with a Most Accurate Estimate of $0.99 per share ahead of its earnings release on April 23, 2025 [7] - NEE has an Earnings ESP of +2.33%, calculated from the difference between its Most Accurate Estimate and the Zacks Consensus Estimate of $0.97 [8] - American Electric Power (AEP) is another utility stock with a positive ESP, holding a 3 (Hold) ranking and a Most Accurate Estimate of $2.05 per share, with an Earnings ESP of +9.22% [9][10]

Industry Overview - The AI-powered data center industry is experiencing significant growth, leading to increased demand for nuclear energy as a power source [1][4] - Major tech companies like Microsoft, Alphabet Inc., Meta Platforms Inc., and Amazon.com are collaborating with nuclear energy producers to meet the high electricity needs of data centers [2] Nuclear Energy Stocks - Five nuclear energy stocks with favorable Zacks Rank are highlighted: Constellation Energy Corp. (CEG), BWX Technologies Inc. (BWXT), Dominion Energy Inc. (D), American Electric Power Co. Inc. (AEP), and NextEra Energy Inc. (NEE) [3] Constellation Energy Corp. (CEG) - CEG is focusing on clean energy, particularly nuclear, with a strategic capital expenditure of $5.1 billion through 2025 to acquire nuclear fuel and increase inventory [8] - The company aims to eliminate 100% of greenhouse gas emissions and has a nuclear fleet capacity factor of 94.6% in 2024, showing strong production [9] - CEG has entered a 20-year agreement with Microsoft to revive the Three Mile Island nuclear plant, with a $1.6 billion investment to provide carbon-free electricity [11] - Expected revenue and earnings growth rates for CEG are -9.7% and 8.3%, respectively, for the current year [12] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and has a Zacks Rank of 2, with expected revenue and earnings growth rates of 11.6% and 5.1%, respectively, for the current year [13][14] - The company has secured partnerships with the U.S. Department of Defense and commercial nuclear energy companies to develop advanced nuclear technologies [14] PG&E Corp. (PCG) - PG&E is involved in the sale and delivery of electricity and natural gas in California, generating power from various sources including nuclear [15][16] - The expected revenue and earnings growth rates for PCG are 7.3% and 10.3%, respectively, for the current year [17] American Electric Power Co. Inc. (AEP) - AEP owns the largest electricity transmission system in the U.S. and plans to invest $54 billion from 2025 to 2029 to strengthen its grid [18] - Approximately 22% of AEP's power is generated from nuclear energy, with expected revenue and earnings growth rates of 6.9% and 4.5%, respectively, for the current year [19] NextEra Energy Inc. (NEE) - NEE is expanding its operations through organic projects and acquisitions, with a net generation and storage capacity of approximately 72 gigawatts as of December 31, 2024 [20] - The company expects to add 36.5-46.5 GW of new renewables from 2024 to 2027, with an expected revenue growth rate of 20.2% for the current year [21]

Core Viewpoint - Utility stocks provide substantial dividend income, stability for shareholders, and potential for long-term growth, making them an attractive investment option during market volatility [1][2]. Group 1: NextEra Energy - NextEra Energy is one of the largest energy conglomerates globally, with its subsidiary Florida Power & Light serving over 6 million accounts in Florida [3]. - The company is the largest producer of renewable energy from wind and solar and operates seven commercial nuclear power units in the U.S. [3]. - NextEra has a history of growth driven by the increasing demand for electricity and the transition to renewable energy sources, having paid and raised its dividend for 30 consecutive years, currently yielding 3.4% [4]. - Analysts project an average earnings growth of over 7% annually for NextEra, indicating strong potential for clean energy investments [5]. Group 2: Enbridge - Enbridge is a major player in North America's oil and gas transportation, operating gas utilities for approximately 3 million people across five U.S. states [6]. - The company has a diverse business model that includes renewable energy projects, providing a stable dividend yield of 6.2% and a history of 28 consecutive years of dividend increases [7]. - Enbridge is expected to generate annualized total returns of around 10% to 11%, primarily through dividends, offering shareholders consistent returns [8]. Group 3: American Electric Power - American Electric Power serves approximately 5.6 million people across 11 states and has the most extensive transmission network in the U.S., spanning over 40,000 miles [9][10]. - The company plans to invest $54 billion over the next five years to meet increased demand from data centers and economic development, anticipating earnings growth of 6% to 8% annually [10]. - With a solid initial yield of 3.5% and a history of 15 consecutive years of dividend increases, American Electric Power is projected to deliver long-term annualized total returns of around 9% to 10% [11].

Core Points - Indiana Michigan Power (I&M) has filed for a certificate of public convenience and necessity (CPCN) to acquire the Oregon Clean Energy Center, an 870 MW natural gas plant in Oregon, Ohio [1][2] - The acquisition is part of I&M's Future Ready plan, aimed at ensuring reliable and affordable energy for customers [3][4] - I&M anticipates a significant increase in power demand, projecting growth from approximately 2,800 MW in 2024 to over 7,000 MW by 2030, highlighting the need for additional generation capacity [4][5] Company Overview - I&M serves over 600,000 customers and has a diverse generation portfolio, including nuclear, wind, solar, coal, and hydroelectric resources [8] - In 2023, more than 85% of the energy delivered by I&M was emission-free, showcasing the company's commitment to sustainable energy [8] - The company is part of American Electric Power (AEP), which plans to invest $54 billion from 2025 to 2029 to enhance service and meet growing energy needs [9]