How does AEP's Q1 2025 forecast compare to past trends?

American Electric Power's (AEP) Q1 2025 forecast shows a positive outlook, reflecting strong historical performance and strategic growth initiatives.

1. Earnings Growth: AEP's diluted EPS for Q1 2025 is forecasted to be $1.32, which is slightly above the previous year's EPS of $1.24. This indicates a positive trend in earnings growth.

2. Revenue Growth: The company's total revenue for Q1 2025 is estimated to be $1.32 billion. While specific quarterly revenue data for 2022 and 2023 is not available, the overall trend of increasing revenue from 2022 to 2024 is positive, with revenue growing from $4.59 billion in 2022 to $5.03 billion in 2024.

3. Strategic Initiatives: AEP's commercial load grew by 10.6% in 2024, driven by economic development in its service areas. The company's capital plan for the next five years is $54 billion, aimed at enhancing infrastructure and supporting growth. These strategic moves are likely to contribute to continued revenue and earnings growth in the coming quarters.

4. Analyst Confidence: Analysts have upgraded AEP's stock, with a recent upgrade from BofA Securities, citing the company's attractive valuation and potential for EPS growth. The reaffirmed 2025 operating earnings guidance of $5.75 to $5.95 per share suggests confidence in AEP's financial stability and growth prospects.

In conclusion, AEP's Q1 2025 forecast is optimistic, with expected growth in earnings and revenue. This outlook is supported by the company's strategic investments in infrastructure and its positive market perception, as reflected in the analyst upgrades.