American Electric Power (AEP) Q3 Earnings and Revenues Beat Estimates

Group 1: Earnings Performance - American Electric Power (AEP) reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.78 per share, and up from $1.77 per share a year ago, representing an earnings surprise of 3.93% [1] - AEP's revenues for the quarter ended September 2024 were $5.4 billion, surpassing the Zacks Consensus Estimate by 0.11%, and compared to $5.3 billion in the same quarter last year [2] - Over the last four quarters, AEP has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - AEP shares have increased approximately 23.6% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $1.28 on revenues of $5.06 billion, and for the current fiscal year, it is $5.60 on revenues of $20.06 billion [7] Group 3: Industry Context - The Utility - Electric Power industry, to which AEP belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - AEP currently holds a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]