What's in Store for American Electric Power in Q3 Earnings?

Core Viewpoint - American Electric Power Company, Inc (AEP) is expected to report its third-quarter 2024 results on November 6, with a consensus estimate for revenues at $5.39 billion, indicating a 1.8% year-over-year growth, and earnings per share estimated at $1.78, reflecting a 0.6% increase from the previous year [1][5][6]. Factors Influencing AEP's Q3 Earnings - Warmer-than-normal weather conditions in AEP's service territories likely increased electricity demand for cooling, contributing positively to revenue [2]. - Favorable rate revisions, solid transmission revenues, and increased customer volumes are expected to have further supported AEP's quarterly performance [3]. - Adverse weather events, including heavy rainfall, flooding, tornadoes, Hurricane Beryl, and windstorm Derecho, may have disrupted services and caused outages, potentially impacting overall revenues [4]. Financial Expectations - The Zacks Consensus Estimate for AEP's third-quarter revenues is $5.39 billion, suggesting a 1.8% growth from the prior year [5]. - Higher interest and depreciation expenses may negatively affect the company's bottom line, but benefits from previous investments and higher normalized retail sales could enhance overall earnings [5]. - The sale of AEP OnSite Partners is anticipated to have been completed in Q3 2024, with net proceeds of approximately $315 million likely added to AEP's cash balance [6]. Earnings Prediction - AEP has an Earnings ESP of +0.94%, indicating a favorable outlook for an earnings beat [7]. - Currently, AEP holds a Zacks Rank of 3, suggesting a neutral outlook [8].