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Ameren (AEE) Q3 Earnings Top Estimates, Revenues Drop Y/Y
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Ameren Corporation’s (AEE - Free Report) third-quarter 2020 earnings of $1.47 per share from continuing operations beat the Zacks Consensus Estimate of $1.44 by 2.1%. The bottom line came in line with the year-ago quarter reported figure.
Notably, increased infrastructure investments made across all business segments, new Ameren Missouri electric service rates effective Apr 1, 2020 as well as lower Ameren Missouri operations and maintenance expenses benefitted quarterly earnings. However, these favorable factors were offset by lower Ameren Missouri electric retail sales on account of milder-than-normal temperatures and COVID-19 impact.
Total Revenues
Total revenues came in at $1,628 million in the reported quarter, which declined 1.9% year over year on account of lower electric sales volumes. The top line also lagged the Zacks Consensus Estimate of $1,717 million by 5.2%.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren’s total electricity sales volume dropped 1.7% to 20,015 million kilowatt hours (kWh) compared with 20,355 million kWh in the year-ago quarter. However, gas volumes went up 7% to 30 million dekatherms.
Total operating expenses were $1,134 million, down 0.4% year over year. Interest expenses were $110 million compared with $96 million a year ago. The company’s operating income declined 5% to $494 million from $520 million in the year-ago quarter.
Segment Results
Ameren Missouri segment reported operating earnings of $297 million for the third quarter compared with $300 million in the year-ago quarter. The downside can be attributed to lower electric sales from milder-than-normal temperature in the third quarter of 2020 as well as due to the impact of COVID-19. In addition, third-quarter earnings were negatively impacted by lower energy efficiency performance incentives compared to the year-ago period.
Ameren Illinois Electric Distribution segment reported operating income of $34 million compared with $32 million in the year-ago quarter. Increased earnings on infrastructure and energy efficiency investments benefited this segment’s bottom line, which was partially offset by a lower allowed return on equity.
Ameren Illinois Natural Gas segment reported operating income of $2 million against loss of $1 million in the year-ago quarter. The upside was driven by increased earnings on infrastructure investments.
Ameren Transmission segment reported operating income of $62 million in the third quarter compared with $53 million in the year-ago quarter, led by increased earnings on infrastructure investments.
Financial Condition
The company reported cash and cash equivalents of $6 million as of Sep 30, 2020, compared with $16 million at 2019-end.
As of Sep 30, 2020, long-term debt totaled $10,172 million compared with $8,915 million as of Dec 31, 2019.
At the end of third-quarter 2020, cash from operating activities amounted to $1,329 million compared with $1,668 million at the third quarter of 2019 end.
Guidance
Ameren narrowed its 2020 earning guidance. The company now expects earnings in the range of $3.40-$3.55 per share, compared with the prior projection of $3.40-$3.60. Currently, the Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $3.46 per share, slightly lower than the midpoint of its guided range.
Entergy (ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.
American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.
NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Ameren (AEE) Q3 Earnings Top Estimates, Revenues Drop Y/Y
Ameren Corporation’s (AEE - Free Report) third-quarter 2020 earnings of $1.47 per share from continuing operations beat the Zacks Consensus Estimate of $1.44 by 2.1%. The bottom line came in line with the year-ago quarter reported figure.
Notably, increased infrastructure investments made across all business segments, new Ameren Missouri electric service rates effective Apr 1, 2020 as well as lower Ameren Missouri operations and maintenance expenses benefitted quarterly earnings. However, these favorable factors were offset by lower Ameren Missouri electric retail sales on account of milder-than-normal temperatures and COVID-19 impact.
Total Revenues
Total revenues came in at $1,628 million in the reported quarter, which declined 1.9% year over year on account of lower electric sales volumes. The top line also lagged the Zacks Consensus Estimate of $1,717 million by 5.2%.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote
Ameren’s total electricity sales volume dropped 1.7% to 20,015 million kilowatt hours (kWh) compared with 20,355 million kWh in the year-ago quarter. However, gas volumes went up 7% to 30 million dekatherms.
Total operating expenses were $1,134 million, down 0.4% year over year. Interest expenses were $110 million compared with $96 million a year ago.
The company’s operating income declined 5% to $494 million from $520 million in the year-ago quarter.
Segment Results
Ameren Missouri segment reported operating earnings of $297 million for the third quarter compared with $300 million in the year-ago quarter. The downside can be attributed to lower electric sales from milder-than-normal temperature in the third quarter of 2020 as well as due to the impact of COVID-19. In addition, third-quarter earnings were negatively impacted by lower energy efficiency performance incentives compared to the year-ago period.
Ameren Illinois Electric Distribution segment reported operating income of $34 million compared with $32 million in the year-ago quarter. Increased earnings on infrastructure and energy efficiency investments benefited this segment’s bottom line, which was partially offset by a lower allowed return on equity.
Ameren Illinois Natural Gas segment reported operating income of $2 million against loss of $1 million in the year-ago quarter. The upside was driven by increased earnings on infrastructure investments.
Ameren Transmission segment reported operating income of $62 million in the third quarter compared with $53 million in the year-ago quarter, led by increased earnings on infrastructure investments.
Financial Condition
The company reported cash and cash equivalents of $6 million as of Sep 30, 2020, compared with $16 million at 2019-end.
As of Sep 30, 2020, long-term debt totaled $10,172 million compared with $8,915 million as of Dec 31, 2019.
At the end of third-quarter 2020, cash from operating activities amounted to $1,329 million compared with $1,668 million at the third quarter of 2019 end.
Guidance
Ameren narrowed its 2020 earning guidance. The company now expects earnings in the range of $3.40-$3.55 per share, compared with the prior projection of $3.40-$3.60. Currently, the Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $3.46 per share, slightly lower than the midpoint of its guided range.
Zacks Rank
American Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
Entergy (ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.
American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.
NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>