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COLUMBUS, Ohio - On Tuesday, American Electric Power (NASDAQ:AEP) reported first-quarter 2025 operating earnings that exceeded analyst expectations, despite revenue falling short of estimates. The company reaffirmed its full-year guidance as it continues to see strong commercial load growth.
AEP’s stock was down 0.87% in premarket trading following the earnings release.
AEP posted Q1 operating earnings of $1.54 per share, beating the analyst consensus of $1.41. However, revenue came in at $5.46 billion, below estimates of $5.59 billion.
The company reaffirmed its 2025 operating earnings guidance range of $5.75 to $5.95 per share, in line with the $5.87 consensus. AEP also reiterated its long-term growth rate projection of 6% to 8%.
Commercial load grew 12.3% in Q1 compared to the same period last year, continuing the strong trend seen in 2024. AEP forecasts total retail load growth of 8% to 9% annually over the next three years, driven by large customer demand in several states.
The company said it has completed anticipated equity needs for its five-year, $54 billion capital investment plan through recent transactions.
Management noted that AEP’s transmission business is expected to contribute 55% of operating earnings in 2025 as the company expands its grid to meet growing power demand.
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