Why Is AEP (AEP) Up 0.7% Since Last Earnings Report?

Core Viewpoint - American Electric Power (AEP) reported mixed results in its Q3 2025 earnings, with revenues increasing but operating earnings per share (EPS) missing estimates, leading to questions about future performance [2][3][6]. Financial Performance - AEP's Q3 2025 operating EPS was $1.80, missing the Zacks Consensus Estimate of $1.81 by 0.6%, and declined 2.7% from $1.85 in the same quarter last year [2]. - Total revenues for AEP reached $6.01 billion, a 10.9% increase from $5.42 billion in the year-ago quarter, and exceeded the Zacks Consensus Estimate of $5.65 billion by 6.5% [3]. Segmental Performance - Vertically Integrated Utility Operations reported operating earnings of $573.5 million, slightly up from $572.4 million year-over-year [4]. - Transmission & Distribution Utilities saw operating earnings rise to $259.1 million from $245.2 million in the previous year [4]. - AEP Transmission Holdco's operating earnings decreased to $199.9 million from $214.7 million year-over-year [4]. - Generation and Marketing segment's operating earnings fell to $48.4 million from $99.2 million in the prior year [5]. - The "All Other" segment reported an operating loss of $118 million, which was an improvement from a loss of $146.1 million in the year-ago quarter [5]. Guidance and Estimates - AEP 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 $5.90 per share [6]. - Following the earnings release, there has been an upward trend in estimates for AEP [7]. Stock Performance and Outlook - AEP has an average Growth Score of C and a Momentum Score of A, with a value grade of C, placing it in the middle 20% for value investors [8]. - The stock has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [9]. Industry Comparison - AEP is part of the Zacks Utility - Electric Power industry, where PG&E (PCG) has also shown a 0.7% gain over the past month, reporting revenues of $6.25 billion, a year-over-year increase of 5.2% [10]. - PG&E's EPS for the last quarter was $0.50, compared to $0.37 a year ago, and it is expected to post earnings of $0.39 per share for the current quarter, reflecting a 25.8% year-over-year change [11].