AEP (AEP) Q2 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Core Viewpoint - Analysts forecast a quarterly earnings per share (EPS) of $1.16 for American Electric Power (AEP), indicating a year-over-year decline of 7.2%, while revenues are expected to reach $4.76 billion, reflecting a 3.9% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been adjusted downward by 1.7% over the past 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Total Revenues - Generation & Marketing' at $416.14 million, representing a year-over-year decline of 11% [5]. - 'Total Revenues - Transmission and Distribution Utilities' is projected to be $1.49 billion, showing a year-over-year increase of 3.8% [5]. - 'Total Revenues - Vertically Integrated Utilities' is expected to reach $2.81 billion, indicating a 7.2% increase from the previous year [6]. - 'Total Revenues - AEP Transmission Holdco' is forecasted at $530.05 million, reflecting an 8.2% year-over-year increase [6]. Energy Sales Estimates - 'Total Energy Sales - Retail Electric - Transmission & Distribution Utilities - Total Retail' is estimated at 24,357 gigawatt hours, up from 22,808 gigawatt hours year-over-year [7]. - 'Total Energy Sales - Retail Electric - Vertically Integrated Utilities - Total Retail' is projected to be 22,003 gigawatt hours, slightly down from 22,073 gigawatt hours year-over-year [8]. - 'Total Energy Sales - Wholesale Electric - Transmission & Distribution Utilities' is expected to reach 252 gigawatt hours, a slight decrease from 253 gigawatt hours year-over-year [9]. - 'Total Energy Sales - Transmission & Distribution Utilities - Total' is forecasted at 24,609 gigawatt hours, compared to 23,061 gigawatt hours in the same quarter last year [10]. - 'Total Energy Sales - Wholesale Electric - Vertically Integrated Utilities' is estimated at 3,339 gigawatt hours, up from 3,176 gigawatt hours year-over-year [11]. - 'Total Energy Sales - Vertically Integrated Utilities - Total' is projected to be 25,342 gigawatt hours, slightly up from 25,249 gigawatt hours year-over-year [11]. Operating Earnings Estimates - 'Operating Earnings (non-GAAP) - Vertically Integrated Utilities' is expected to be $227.99 million, down from $244.80 million in the same quarter last year [12]. - 'Operating Earnings (non-GAAP) - Transmission & Distribution Utilities' is projected at $220.80 million, compared to $215.30 million reported in the same quarter last year [13]. Stock Performance - Over the past month, AEP shares have returned +6.5%, outperforming the Zacks S&P 500 composite's +4.6% change [13].