American Electric Power to Post Q1 Earnings: What's in Store?

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].