Why did AEP's Q4 2024 earnings miss forecasts?

American Electric Power's (AEP) Q4 2024 earnings missed forecasts due to lower-than-expected revenue, despite strong operational performance and earnings growth. 1. **Revenue Shortfall**: The company's revenue for the fourth quarter was $4,696.3 million, which fell short of the estimated $4,876.22 million. This shortfall, although relatively small, was enough to impact the overall earnings picture when combined with other factors. 2. **Operational Earnings Strength**: On the positive side, AEP's operating earnings for the quarter were $660 million, or $1.24 per share, compared to $647 million, or $1.23 per share, in the previous year. This indicates robust operational performance, which might have been partly offset by the revenue shortfall. 3. **Earnings Per Share (EPS) Analysis**: The company reported an EPS of $1.25 for Q4 2024, which beat estimates slightly, but the EPS surprise was -0.01, indicating the earnings fell slightly short of expectations. This suggests that while the company performed well, the market's expectations were not fully met. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |AEP|AEP.O|American Electric|2024 Q1|151.17382617382617|1.0057E9|185| |AEP|AEP.O|American Electric|2024 Q2|-33.63689207517923|3.425E8|185| |AEP|AEP.O|American Electric|2024 Q3|0.354794949389544|9.617E8|185| |AEP|AEP.O|American Electric|2024 Q4|97.12847838957963|6.659E8|185| In summary, AEP's Q4 2024 earnings missed forecasts due to a combination of lower-than-expected revenue and slightly lower EPS, despite strong operational performance.