American Electric's Q4 Earnings In Line, Revenues Increase Y/Y

Core Viewpoint - American Electric Power Company, Inc. (AEP) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.24, matching the Zacks Consensus Estimate, with a slight increase of 0.8% from $1.23 in the previous year [1] Financial Performance - AEP's GAAP earnings for the quarter were $1.25 per share, significantly higher than the year-ago quarter's 64 cents [2] - For the full year 2024, AEP reported adjusted EPS of $5.62, exceeding the Zacks Consensus Estimate of $5.58, and up from $5.25 in 2023 [2] - Total revenues for the fourth quarter were $4.70 billion, a 2.6% increase from $4.58 billion in the previous year, but fell short of the Zacks Consensus Estimate of $5.08 billion by 7.5% [3] - For the full year 2024, revenues were $19.72 billion, missing the Zacks Consensus Estimate of $20.02 billion, but improved from $18.98 billion in 2023 [3] Segment Performance - Vertically Integrated Utility Operations saw adjusted earnings rise to $275.5 million from $237.8 million year-over-year [4] - Transmission & Distribution Utilities reported adjusted earnings of $191.3 million, up from $188.6 million in the prior year [4] - AEP Transmission Holdco generated adjusted earnings of $166.3 million, an increase from $159.3 million year-over-year [4] - Generation and Marketing segment's adjusted earnings decreased to $30.2 million from $103.5 million in the previous year [5] - The "All Other" segment reported a loss of $3.2 million, an improvement from a loss of $42.3 million in the year-ago quarter [5] Operational Highlights - Electricity sales volume from Vertically Integrated Utilities increased by 4% year-over-year [6] - Transmission & Distribution Utilities experienced a significant improvement in electricity sales volume, rising by 20% [6] Future Guidance - AEP has reaffirmed its 2025 operating earnings guidance, expecting to generate earnings in the range of $5.75-$5.95 per share, with the Zacks Consensus Estimate at $5.87 per share, above the midpoint of the projected range [7] Zacks Rank - AEP currently holds a Zacks Rank 3 (Hold) [8]