AEP Posts Earnings Beat but Ranks 302nd in Trading Activity as Volume Dips 22.3%

American Electric Power (AEP) closed on August 29, 2025, with a 0.68% decline, marking a drop in trading volume to $0.32 billion—a 22.3% decrease from the prior day. The stock ranked 302nd in trading activity, reflecting reduced investor engagement despite recent earnings performance.

AEP’s Q2 2025 earnings exceeded expectations, reporting operating EPS of $1.43, a 11.7% beat over the Zacks consensus. GAAP earnings surged to $2.29 per share from $0.64 in the prior year. Total revenue grew 11.1% year-over-year to $5.09 billion, outpacing the $4.94 billion estimate. Segment-wise, vertically integrated utility operations and transmission utilities showed notable earnings growth, while the Generation and Marketing segment saw a significant 50% increase in operating profits compared to the previous year.

Despite these positive metrics, AEP’s stock underperformed broader market benchmarks, slipping 1.2% since its last earnings report. The company reaffirmed its 2025 operating earnings guidance of $5.75–$5.95 per share, aligning with the Zacks consensus of $5.85. Analysts remain cautious, noting a flat trend in earnings estimates and mixed valuation scores, with a subpar growth rating but a stronger momentum score.

Backtest results indicate AEP’s YTD return of 23.59% outperformed the S&P 500’s 9.84%, while its 5-year return of 70.22% trailed the index’s 84.16%. The stock’s trailing P/E of 16.28 and forward P/E of 19.05 suggest moderate valuation, with a 6–8% long-term EPS growth outlook. However, its 3.33% dividend yield and recent earnings momentum remain key factors for investor consideration.