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Is a Beat in the Cards for Ameren (AEE) in Q1 Earnings?

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Ameren Corporation (AEE - Free Report) is anticipated to beat earnings estimates in first-quarter 2018 results, before the opening bell, on May 9, 2018. In the last reported quarter, the utility delivered a positive earnings surprise of 14.71%.

Why a Likely Positive Surprise?

Our proven model shows that Ameren is likely to beat on earnings in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. Ameren has the right combination of both the elements.

Zacks ESP: Ameren has an Earnings ESP of +1.45%.
 
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter..

Ameren Corporation Price and EPS Surprise
 

Ameren Corporation Price and EPS Surprise | Ameren Corporation Quote

Zacks Rank: Ameren has a Zacks Rank #3, which increases the predictive power of ESP. The company’s positive rank combined with +1.45% ESP increases the possibility of a positive earnings surprise.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Factors at Play

The Zacks Consensus Estimate for first-quarter 2018 earnings is pegged at 58 cents per share, reflecting 38% growth from the year-ago reported quarter.

Ameren expects its first-quarter earnings to gain from an increase in Missouri electric service rates, return to normal weather, and absence of scheduled Callaway refueling and maintenance outage. All these factors are likely to have a combined benefit of 28 cents on Ameren Missouri’s earnings compared with first-quarter 2017.  In addition, refinancing of debts at favorable terms will also boost its earnings by 4 cents in the quarter.

However, other operation and maintenance expenses at Ameren Missouri will likely have an adverse impact of 14 cents on earnings compared with first-quarter 2017.

Other Stocks to Consider

In addition to Ameren, investors can also consider some companies from the industry, as our model shows that they also have the right combination of elements to post an earnings beat in the to-be-reported quarter:

Duke Energy Corporation (DUK - Free Report) will report first-quarter 2018 results on May 10. The company has an Earnings ESP of +1.66% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The AES Corporation (AES - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. The company is scheduled to report first-quarter 2018 results on May 8.

Pattern Energy Group Inc. has an Earnings ESP of +51.52% and a Zacks Rank #3. The company is slated to report first-quarter 2018 numbers on May 10.

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