In its upcoming report, American Electric Power (AEP) is predicted by Wall Street analysts to post quarterly earnings of $1.49 per share, reflecting an increase of 4.2% compared to the same period last year. Revenues are forecasted to be $5.26 billion, representing a year-over-year increase of 3.4%.
The consensus EPS estimate for the quarter has undergone an upward revision of 2.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain AEP metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Total Revenues- Generation & Marketing' to come in at $488.10 million. The estimate indicates a change of -13.8% from the prior-year quarter.
Based on the collective assessment of analysts, 'Total Revenues- Transmission and Distribution Utilities' should arrive at $1.57 billion. The estimate suggests a change of +8.7% year over year.
The average prediction of analysts places 'Total Revenues- Vertically Integrated Utilities' at $3.25 billion. The estimate points to a change of +7.6% from the year-ago quarter.
Analysts predict that the 'Total Revenues- AEP Transmission Holdco' will reach $601.07 million. The estimate suggests a change of -20.6% year over year.
It is projected by analysts that the 'Operating Earnings (non-GAAP)- Vertically Integrated Utilities' will reach $362.95 million. Compared to the present estimate, the company reported $296.70 million in the same quarter last year.
The consensus among analysts is that 'Operating Earnings (non-GAAP)- Transmission & Distribution Utilities' will reach $246.57 million. The estimate compares to the year-ago value of $224.10 million.
Analysts' assessment points toward 'Operating Earnings (non-GAAP)- Generation & Marketing' reaching $70.27 million. The estimate is in contrast to the year-ago figure of $91.70 million.
The combined assessment of analysts suggests that 'Operating Earnings (non-GAAP)- AEP Transmission Holdco' will likely reach $220.73 million. The estimate compares to the year-ago value of $224.50 million.
View all Key Company Metrics for AEP here>>>Over the past month, shares of AEP have returned -2.3% versus the Zacks S&P 500 composite's +0.8% change. Currently, AEP carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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