It has been about a month since the last earnings report for American Electric Power (AEP). Shares have added about 0.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is AEP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
American Electric's Q3 Earnings Miss Estimates, Revenues Increase Y/Y
American Electric Power Company, Inc. reported third-quarter 2025 operating earnings per share (EPS) of $1.80, which missed the Zacks Consensus Estimate of $1.81 by 0.6%. The bottom line declined 2.7% from $1.85 recorded in the year-ago quarter.
The company reported GAAP earnings of $1.82 per share compared with the year-ago quarter’s $1.80.
Total Revenues
AEP’s revenues of $6.01 billion rose 10.9% from the year-ago quarter’s level of $5.42 billion. The top line also beat the Zacks Consensus Estimate of $5.65 billion by 6.5%.
AEP’s Segmental Performance
Vertically Integrated Utility Operations: Operating earnings increased to $573.5 million from $572.4 million in the year-ago period.
Transmission & Distribution Utilities: Operating earnings totaled $259.1 million, up from $245.2 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated operating earnings of $199.9 million, down from $214.7 million in the year-ago quarter.
Generation and Marketing: Operating earnings amounted to $48.4 million, down from $99.2 million in the year-ago quarter.
All Other: The segment reported an operating loss of $118 million, narrower than the year-ago reported loss of $146.1 million.
AEP’s 2025 Guidance
American Electric has reaffirmed its 2025 operating earnings guidance. It still expects to generate earnings in the band of $5.75-$5.95 per share. The Zacks Consensus Estimate for earnings is pegged at $5.90 per share, which lies above the midpoint of the company’s projected range.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, AEP has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, AEP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
AEP is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG), a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended September 2025 more than a month ago.
PG&E reported revenues of $6.25 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $0.50 for the same period compares with $0.37 a year ago.
For the current quarter, PG&E is expected to post earnings of $0.39 per share, indicating a change of +25.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for PG&E. Also, the stock has a VGM Score of A.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
