American Electric Power Company, Inc. (NASDAQ:AEP) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. The company beat expectations with revenues of US$5.5b arriving 5.4% ahead of forecasts. Statutory earnings per share (EPS) were US$1.50, 8.1% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from American Electric Power Company's 15 analysts is for revenues of US$21.0b in 2025. This reflects a reasonable 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to US$5.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$21.3b and earnings per share (EPS) of US$5.88 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for American Electric Power Company
There were no changes to revenue or earnings estimates or the price target of US$109, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on American Electric Power Company, with the most bullish analyst valuing it at US$120 and the most bearish at US$95.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the American Electric Power Company's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.3% growth on an annualised basis. That is in line with its 6.6% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 4.7% per year. So although American Electric Power Company is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$109, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple American Electric Power Company analysts - going out to 2027, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with American Electric Power Company (including 1 which is a bit concerning) .
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