Analysts on Wall Street project that American Electric Power (AEP) will announce quarterly earnings of $1.39 per share in its forthcoming report, representing an increase of 9.5% year over year. Revenues are projected to reach $5.34 billion, increasing 6.7% from the same quarter last year.
The current level reflects an upward revision of 13.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific AEP metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Total Revenues- Generation & Marketing' should arrive at $486.90 million. The estimate indicates a year-over-year change of -13.6%.
The collective assessment of analysts points to an estimated 'Total Revenues- Transmission and Distribution Utilities' of $1.56 billion. The estimate indicates a change of +5% from the prior-year quarter.
The average prediction of analysts places 'Total Revenues- Vertically Integrated Utilities' at $3.10 billion. The estimate indicates a year-over-year change of +5.1%.
Analysts predict that the 'Total Revenues- AEP Transmission Holdco' will reach $521.30 million. The estimate points to a change of +4.8% from the year-ago quarter.
The consensus estimate for 'Total Energy Sales - Retail Electric - Transmission & Distribution Utilities - Total Retail' stands at 23,292.62 GWh. The estimate compares to the year-ago value of 21,263 GWh.
It is projected by analysts that the 'Total Energy Sales - Retail Electric - Vertically Integrated Utilities - Total Retail' will reach 23,696.08 GWh. The estimate is in contrast to the year-ago figure of 23,119 GWh.
Analysts' assessment points toward 'Total Energy Sales - Wholesale Electric - Transmission & Distribution Utilities' reaching 599.76 GWh. The estimate is in contrast to the year-ago figure of 590 GWh.
Analysts expect 'Total Energy Sales - Transmission & Distribution Utilities - Total' to come in at 23,892.38 GWh. Compared to the current estimate, the company reported 21,853 GWh in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total Energy Sales - Wholesale Electric - Vertically Integrated Utilities' will likely reach 3,900.14 GWh. The estimate is in contrast to the year-ago figure of 3,763 GWh.
Analysts forecast 'Total Energy Sales - Vertically Integrated Utilities - Total' to reach 27,596.21 GWh. The estimate compares to the year-ago value of 26,882 GWh.
The consensus among analysts is that 'Operating Earnings (non-GAAP)- Vertically Integrated Utilities' will reach $340.94 million. The estimate compares to the year-ago value of $300.30 million.
According to the collective judgment of analysts, 'Operating Earnings (non-GAAP)- Transmission & Distribution Utilities' should come in at $195.14 million. The estimate is in contrast to the year-ago figure of $150.30 million.
View all Key Company Metrics for AEP here>>>
Over the past month, AEP shares have recorded returns of +0.6% versus the Zacks S&P 500 composite's -0.7% change. Based on its Zacks Rank #3 (Hold), AEP will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Electric Power Company, Inc. (AEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
