AEP Beats on Q3 Revenue, Unveils $100B Five-Year Capital Plan
AEP is trading near its 52-week low of $112.535 (14% above the low).
Summary
AEP beat on both lines: Q3 revenue of $6.83 billion topped the $6.55 billion consensus and rose 13.65% year over year, while adjusted EPS of $2.23 came in above the $2.05 estimate. The bigger news is the $100 billion five-year capital plan and a raised long-term outlook — 2027 operating EPS guided to $6.75-$7.05 and 2028 to $7.40-$7.70, with 9%-11% annual EPS growth targeted for 2027-2031. Management credited new large-load customer contracts for the demand lift, extending the load-growth story from the Q2 call, when AEP signed 6 GW of new commitments and flagged 45 GW of contracted Texas load. Full-year 2026 operating EPS is now expected at or above the high end of the $6.25-$6.55 range. The stock trades at 19x forward earnings versus 21x three months ago, and the $143.82 median price target sits about 10.4% above the October 27 close of $130.30.
At the time of this announcement, AEP was trading at $128.50 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $70.9B. The 52-week trading range was $112.54 to $140.58. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.