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Why Is AEP (AEP) Down 1.2% Since Last Earnings Report?

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It has been about a month since the last earnings report for American Electric Power (AEP - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AEP due for a breakout? 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 catalysts.

American Electric's Q2 Earnings Beat Estimates, Revenues Increase Y/Y

American Electric Power Company, Inc. reported second-quarter 2025 operating earnings per share (EPS) of $1.43, which beat the Zacks Consensus Estimate of $1.28 by 11.7%. The bottom line inched up 14.4% from $1.25 recorded in the year-ago quarter. 

The company reported GAAP earnings of $2.29 per share compared with the year-ago quarter’s 64 cents.

Total Revenues

AEP’s revenues of $5.09 billion rose 11.1% from the year-ago quarter’s level of $4.58 billion. The top line also beat the Zacks Consensus Estimate of $4.94 billion by 2.9%.

AEP’s Segmental Performance

Vertically Integrated Utility Operations: Operating earnings increased to $296.7 million from $244.8 million in the year-ago period.

Transmission & Distribution Utilities: Operating earnings totaled $224.1 million, up from $215.3 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated operating earnings of $224.5 million, up from $208.9 million in the year-ago quarter.

Generation and Marketing: Operating earnings amounted to $91.7 million, up from $61 million in the year-ago quarter.

All Other: The segment reported an operating loss of $71.3 million, wider than the year-ago reported loss of $68 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 $5.85 per share, which lies in line with the midpoint of the company’s projected range.

AEP continues to expect the long-term EPS growth rate to be in the range of 6-8%. 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

At this time, AEP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

AEP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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