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Rate revisions, industrial load growth and data center demand may offset higher interest costs.
American Electric Power Company, Inc. (AEP - Free Report) is slated to release fourth-quarter 2025 results on Feb. 12, before market open.
The company delivered a negative earnings surprise of 0.55% in the last quarter. However, American Electric Power has a trailing four-quarter average earnings surprise of 5.49%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note Ahead of AEP’s Q4 Results
Most of AEP’s service territories observed warmer-than-normal weather conditions in the fourth quarter. This is likely to have hampered electricity demand from its customers for heating purposes this winter, which is expected to have hurt its quarterly revenues.
Factors like favorable rate revisions in prior quarters, industrial load growth, data center demand and higher normalized retail sales, aided by economic development in the states where AEP operates, are likely to have boosted the top-line performance in the soon-to-be-reported quarter.
Higher interest expenses and depreciation expenses are likely to have weighed on its fourth-quarter earnings. Nevertheless, positive revenue expectations are expected to have aided the bottom-line performance.
American Electric Power Company, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for AEP’s sales is pegged at $5.23 billion, which indicates year-over-year growth of 11.4%.
The consensus estimate for earnings is pegged at $1.15 per share, which indicates a year-over-year decline of 7.3%.
The consensus estimate for total energy sales for vertically integrated utilities is pinned at 26.69 billion kWh, which indicates year-over-year growth of 5.2%.
What the Zacks Model Unveils for AEP
Our proven model predicts an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: AEP has an Earnings ESP of +1.05%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here, we have mentioned a few players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases:
Ameren (AEE - Free Report) is slated to report its fourth-quarter 2025 results on Feb. 11, after market close. It has an Earnings ESP of +1.56% and a Zacks Rank of 2 at present.
AEE’s long-term (three to five years) earnings growth rate is 9.3%. The Zacks Consensus Estimate for earnings is pinned at 77 cents per share.
Entergy (ETR - Free Report) is slated to report its fourth-quarter 2025 results on Feb. 12, before market open. It has an Earnings ESP of +1.64% and a Zacks Rank of 3 at present.
ETR’s long-term earnings growth rate is 10.2%. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share.
Edison International (EIX - Free Report) is scheduled to report its fourth-quarter 2025 results on Feb. 18, after market close. It has an Earnings ESP of +8.65% and a Zacks Rank of 3 at present.
EIX’s long-term earnings growth rate is 10.9%. The Zacks Consensus Estimate for earnings stands at $1.47 per share, which implies a year-over-year increase of 40%.
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American Electric Power to Post Q4 Earnings: What's in Store?
Key Takeaways
American Electric Power Company, Inc. (AEP - Free Report) is slated to release fourth-quarter 2025 results on Feb. 12, before market open.
The company delivered a negative earnings surprise of 0.55% in the last quarter. However, American Electric Power has a trailing four-quarter average earnings surprise of 5.49%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note Ahead of AEP’s Q4 Results
Most of AEP’s service territories observed warmer-than-normal weather conditions in the fourth quarter. This is likely to have hampered electricity demand from its customers for heating purposes this winter, which is expected to have hurt its quarterly revenues.
Factors like favorable rate revisions in prior quarters, industrial load growth, data center demand and higher normalized retail sales, aided by economic development in the states where AEP operates, are likely to have boosted the top-line performance in the soon-to-be-reported quarter.
Higher interest expenses and depreciation expenses are likely to have weighed on its fourth-quarter earnings. Nevertheless, positive revenue expectations are expected to have aided the bottom-line performance.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. price-eps-surprise | American Electric Power Company, Inc. Quote
AEP’s Q4 Expectations
The Zacks Consensus Estimate for AEP’s sales is pegged at $5.23 billion, which indicates year-over-year growth of 11.4%.
The consensus estimate for earnings is pegged at $1.15 per share, which indicates a year-over-year decline of 7.3%.
The consensus estimate for total energy sales for vertically integrated utilities is pinned at 26.69 billion kWh, which indicates year-over-year growth of 5.2%.
What the Zacks Model Unveils for AEP
Our proven model predicts an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: AEP has an Earnings ESP of +1.05%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, American Electric carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here, we have mentioned a few players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases:
Ameren (AEE - Free Report) is slated to report its fourth-quarter 2025 results on Feb. 11, after market close. It has an Earnings ESP of +1.56% and a Zacks Rank of 2 at present.
AEE’s long-term (three to five years) earnings growth rate is 9.3%. The Zacks Consensus Estimate for earnings is pinned at 77 cents per share.
Entergy (ETR - Free Report) is slated to report its fourth-quarter 2025 results on Feb. 12, before market open. It has an Earnings ESP of +1.64% and a Zacks Rank of 3 at present.
ETR’s long-term earnings growth rate is 10.2%. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share.
Edison International (EIX - Free Report) is scheduled to report its fourth-quarter 2025 results on Feb. 18, after market close. It has an Earnings ESP of +8.65% and a Zacks Rank of 3 at present.
EIX’s long-term earnings growth rate is 10.9%. The Zacks Consensus Estimate for earnings stands at $1.47 per share, which implies a year-over-year increase of 40%.