American Electric Power Q2 revenue beats estimates, raises FY outlook

Overview

• US electric utility's Q2 revenue rose and beat analyst expectations

• Adjusted EPS for Q2 declined and missed analyst estimates

• Company raised full-year 2026 operating EPS guidance

Outlook

• AEP raises full-year 2026 operating EPS guidance to $6.25-$6.55

• Company reaffirms annual operating earnings growth rate of 7%-9% through 2030

• AEP expects robust customer demand and expands contracted load growth to 69 GW through 2030

Result Drivers

• LOAD GROWTH - Co said strong commercial and industrial demand, especially in Texas, drove higher contracted load and revenue

• EARNINGS PRESSURE - Co said lower operating earnings were due to the 2025 transmission minority interest sale and timing of tax-related items, per CEO Bill Fehrman

• REGULATORY AND COST OFFSETS - Co cited productive regulatory outcomes and customer cost offsets from federal loans and grants as supporting affordability and results

Company press release: ID:nPn7L0cLca

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for American Electric Power Company Inc is $145.00, about 12.1% above its July 29 closing price of $129.40

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• July 30 - Xcel Energy tops second-quarter profit estimates on higher infrastructure investment recovery

• July 29 - Entergy misses quarterly profit estimates as operating costs weigh

• July 28 - CenterPoint Energy reports Q2 profit beat, hikes capex plan on data center demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)