Core Viewpoint - American Electric Power (AEP) has shown a mixed performance in the market, with shares declining by approximately 1.2% since the last earnings report, underperforming the S&P 500. The upcoming earnings release raises questions about whether this negative trend will continue or if AEP is poised for a breakout [1]. Financial Performance - AEP reported Q2 2025 operating earnings per share (EPS) of $1.43, exceeding the Zacks Consensus Estimate of $1.28 by 11.7% and reflecting a 14.4% increase from $1.25 in the same quarter last year [2]. - The company's GAAP earnings were $2.29 per share, significantly higher than the 64 cents reported in the year-ago quarter [2]. - Total revenues for AEP reached $5.09 billion, marking an 11.1% increase from $4.58 billion in the previous year and surpassing the Zacks Consensus Estimate of $4.94 billion by 2.9% [3]. Segment Performance - Vertically Integrated Utility Operations saw operating earnings rise to $296.7 million from $244.8 million year-over-year [4]. - Transmission & Distribution Utilities reported operating earnings of $224.1 million, up from $215.3 million in the prior year [4]. - AEP Transmission Holdco generated operating earnings of $224.5 million, an increase from $208.9 million year-over-year [4]. - Generation and Marketing segment's operating earnings increased to $91.7 million from $61 million in the year-ago quarter [5]. - The "All Other" segment reported an operating loss of $71.3 million, wider than the previous year's loss of $68 million [5]. Guidance and Estimates - 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 $5.85 per share, aligning with the midpoint of the projected range [6]. - The company anticipates a long-term EPS growth rate of 6-8% [6]. - In the past month, there has been a flat trend in estimates review for AEP [7]. Investment Scores - AEP currently holds a subpar Growth Score of D, while its Momentum Score is rated B. The stock has a value score of C, placing it in the middle 20% for this investment strategy [8]. - The aggregate VGM Score for AEP is D, which is relevant for investors not focused on a single strategy [9]. Outlook - AEP has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return from the stock in the upcoming months [10].