American Electric Misses Q4 Revenue Expectations, Reaffirms FY25 Guidance: Stock Edges Lower, Retail Sentiment Worsens

Shares of American Electric Power Company Inc. (AEP) edged lower by 0.2% in Thursday’s morning trade after the utility provider’s fourth-quarter earnings missed both earnings and revenue expectations.

American Electric posted earnings per share (EPS) of $1.24, missing the $1.25 estimate by a whisker, according to Stocktwits data.

The Ohio-based company missed revenue expectations by a wider margin, reporting a topline of $4.7 billion, below the estimated $4.91 billion.

AEP has now missed earnings estimates in two of the past five quarters, but its record is worse in terms of revenue – it missed estimates in all the five previous quarters.

For the fiscal year 2024, AEP’s earnings met estimates of $5.62 per share.

However, for the fiscal year 2025, AEP reaffirmed its guidance – it expects to post EPS in the range of $5.75 and $5.95.

AEP expects 8% to 9% annual total load growth between 2025 and 2027, and by the end of the decade, it expects its new load to rise to 20 gigawatts. 

The company said it is evaluating a $10 billion investment plan across its service territory and regional transmission grids.

Analysts at Bank of America (BofA) Securities hiked their price target for the AEP stock on Wednesday to $108 from $107, implying an upside of nearly 6% from current levels. The brokerage has a ‘Buy’ rating on the stock.

However, retail sentiment on Stocktwits around the AEP stock worsened from a day ago, hovering in the ‘bearish’ (37/100) territory at the time of writing.

AEP’s share price has been volatile recently, gaining just over 4% in the past six months.

However, its one-year performance is relatively better, with gains of nearly 30% during this period.

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Also See: Pacific Gas & Electric Stock Dips On Q4 Revenue Miss Despite Hiking Full-Year Guidance: Retail Sentiment Surges