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Ameren (AEE) Q3 Earnings Beat Estimates, Revenues Down Y/Y

Zacks Equity Research

Ameren Corporation’s AEE third-quarter 2019 earnings of $1.47 per share from continuing operations surpassed the Zacks Consensus Estimate of $1.46 by 0.7%. However, the bottom line declined 2% from the year-ago quarter’s $1.50 per share.

Total Revenues

Total revenues came in at $1,659 million in the reported quarter, which declined 3.9% year over year due to lower electric and natural gas sales volume. The reported figure also missed the Zacks Consensus Estimate of $1,752 million by 5.3%.

Highlights of the Release

Ameren’s total electricity sales volume declined 5.6% to 20,355 million kilowatt hours (kWh) compared with 21,568 million kWh in the year-ago quarter. However, gas volumes stood at 28 million dekatherms during the third quarter.

Total operating expenses summed $1,139 million, down 4.4% year over year from $1,191 million. Interest expenses were $96 million compared with $101 million a year ago.

The company’s operating income declined 2.4% to $520 million from $533 million in the year-ago quarter.

Segment Results

The Ameren Missouri segment reported operating income of $300 million in the third quarter compared with $298 million in the year-ago quarter. The year-over-year rise reflected 2019 energy efficiency performance incentives of $13 million.

The Ameren Illinois Electric Distribution segment reported operating income of $32 million in the third quarter compared with $38 million in the year-ago quarter. The year-over-year decline reflected a lower allowed return on equity due to a lower projected average 30-year U.S. Treasury bond yield in 2019 compared to 2018.

The Ameren Illinois Natural Gas segment reported an operating loss of $1 million against the operating income of $1 million in the year-ago quarter. The year-over-year decline was because of a change in rate design.

The Ameren Transmission segment reported operating income of $53 million in the third quarter compared with $48 million in the year-ago quarter. The improvement reflected increased earnings on infrastructure investments.

Financial Condition

The company reported cash and cash equivalents of $20 million as of Sep 30, 2019, compared with $16 million at the 2018-end.

As of Sep 30, 2019, long-term debt totaled $8,651 million compared with $7,859 million as of Dec 31, 2018.

In the first nine months of 2019, cash from operating activities amounted to $1,668 million compared with $1,686 in the first nine months of 2018.

Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation Price, Consensus and EPS Surprise
Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote

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Guidance

Ameren has narrowed its 2019 guidance. The company expects earnings of $3.23-$3.33 per share compared to the earlier guidance of $3.15-$3.35. Currently, the Zacks Consensus Estimate for the company’s 2019 earnings is pegged at $3.25, which lies below the mid-point of the company’s guided range.

Zacks Rank

Ameren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy NEE reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%. Moreover, earnings rose 10.1% on a year-over-year basis.

Entergy Corporation ETR reported third-quarter 2019 adjusted earnings of $2.52 per share, which surpassed the Zacks Consensus Estimate of $2.31 by 9.1%. Moreover, the reported figure rose 7.2% from $2.35 per share in the year-ago quarter.

Public Service Enterprise Group PEG, or PSEG, reported third-quarter 2019 adjusted operating earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 3.2%. The bottom line also improved 3.2% on a year-over-year basis.

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