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Ameren Corporation’s (AEE - Free Report) first-quarter 2021 earnings of 91 cents per share from continuing operations exceeded the Zacks Consensus Estimate of 79 cents by 15.2%. Moreover, the reported figure rose 54.2% from 59 cents reported in the year-ago quarter.
The year-over-year bottom-line improvement can be attributed to new Ameren Missouri electric service rates, which became effective Apr 1, 2020, and higher Ameren Missouri electric retail sales driven by near-normal winter temperatures.
Total Revenues
Total revenues came in at $1,566 million in the reported quarter, which improved 8.8% year over year due to higher electric as well as natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $1,538 million by 1.8%.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren’s total electricity sales volumes declined 5.4% to 17,655 million kilowatt-hours (kWh) compared with 18,671 million kWh witnessed in the year-ago quarter. However, gas volumes rose 6.9% to 77 million dekatherms.
Total operating expenses were $1,250 million, up 4.3% year over year.
The company’s interest expenses in the first quarter were $100 million compared with the prior-year quarter’s $93 million.
Segment Results
The Ameren Missouri segment reported operating income of $47 million in first-quarter 2021 against loss of $10 million recorded in the prior-year quarter. This year-over-year upside reflects new electric service rates effective Apr 1, 2020 and higher electric retail sales driven by near-normal winter temperatures in first-quarter 2021.
The Ameren Illinois Electric Distribution segment reported operating income of $46 million for first-quarter 2021 compared with $37 million registered in first-quarter 2020. The year-over-year improvement can be attributed to increased earnings on infrastructure investments and a higher allowed return on equity due to a higher projected average 30-year U.S. Treasury bond yield in 2021 compared to 2020.
The Ameren Illinois Natural Gas segment reported operating income of $75 million for first-quarter 2021 compared with $55 million generated in the prior-year quarter. This year-over-year improvement reflects a rate design change and higher delivery service rates that incorporated increased investments in infrastructure, both effective in late January 2021.
The Ameren Transmission segment reported operating income of $47 million in first-quarter 2021, flat year over year. The neutral outcome can be attributed to increased earnings on infrastructure investments, which was offset by the impact of a 2021 FERC order addressing the historical recovery of materials and supplies inventories.
Financial Condition
Ameren reported cash and cash equivalents of $6 million as of Mar 31, 2021, compared with $139 million registered at 2020-end.
As of Mar 31, 2021, long-term debt totaled $11,527 million compared with $$11,078 million as of Dec 31, 2020.
During the first quarter, cash outflow from operating activities amounted to $35 million against cash worth $290 million generated in the prior-year quarter.
Guidance
Ameren has reissued its 2021 guidance. The company continues to expect its earnings in the range of $3.65-$3.85 per share. Currently, the Zacks Consensus Estimate for 2021 earnings is pegged at $3.75 per share, in line with the midpoint of the guidance.
WEC Energy Group (WEC - Free Report) reported first-quarter 2021 earnings per share of $1.61, which beat the Zacks Consensus Estimate of $1.47 by 9.5%.
FirstEnergy Corporation (FE - Free Report) recorded first-quarter 2021 operating earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 68 cents by 1.5%.
American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.
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Ameren (AEE) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Ameren Corporation’s (AEE - Free Report) first-quarter 2021 earnings of 91 cents per share from continuing operations exceeded the Zacks Consensus Estimate of 79 cents by 15.2%. Moreover, the reported figure rose 54.2% from 59 cents reported in the year-ago quarter.
The year-over-year bottom-line improvement can be attributed to new Ameren Missouri electric service rates, which became effective Apr 1, 2020, and higher Ameren Missouri electric retail sales driven by near-normal winter temperatures.
Total Revenues
Total revenues came in at $1,566 million in the reported quarter, which improved 8.8% year over year due to higher electric as well as natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $1,538 million by 1.8%.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote
Highlights of the Release
Ameren’s total electricity sales volumes declined 5.4% to 17,655 million kilowatt-hours (kWh) compared with 18,671 million kWh witnessed in the year-ago quarter. However, gas volumes rose 6.9% to 77 million dekatherms.
Total operating expenses were $1,250 million, up 4.3% year over year.
The company’s interest expenses in the first quarter were $100 million compared with the prior-year quarter’s $93 million.
Segment Results
The Ameren Missouri segment reported operating income of $47 million in first-quarter 2021 against loss of $10 million recorded in the prior-year quarter. This year-over-year upside reflects new electric service rates effective Apr 1, 2020 and higher electric retail sales driven by near-normal winter temperatures in first-quarter 2021.
The Ameren Illinois Electric Distribution segment reported operating income of $46 million for first-quarter 2021 compared with $37 million registered in first-quarter 2020. The year-over-year improvement can be attributed to increased earnings on infrastructure investments and a higher allowed return on equity due to a higher projected average 30-year U.S. Treasury bond yield in 2021 compared to 2020.
The Ameren Illinois Natural Gas segment reported operating income of $75 million for first-quarter 2021 compared with $55 million generated in the prior-year quarter. This year-over-year improvement reflects a rate design change and higher delivery service rates that incorporated increased investments in infrastructure, both effective in late January 2021.
The Ameren Transmission segment reported operating income of $47 million in first-quarter 2021, flat year over year. The neutral outcome can be attributed to increased earnings on infrastructure investments, which was offset by the impact of a 2021 FERC order addressing the historical recovery of materials and supplies inventories.
Financial Condition
Ameren reported cash and cash equivalents of $6 million as of Mar 31, 2021, compared with $139 million registered at 2020-end.
As of Mar 31, 2021, long-term debt totaled $11,527 million compared with $$11,078 million as of Dec 31, 2020.
During the first quarter, cash outflow from operating activities amounted to $35 million against cash worth $290 million generated in the prior-year quarter.
Guidance
Ameren has reissued its 2021 guidance. The company continues to expect its earnings in the range of $3.65-$3.85 per share. Currently, the Zacks Consensus Estimate for 2021 earnings is pegged at $3.75 per share, in line with the midpoint of the guidance.
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.
Other Utility Releases
WEC Energy Group (WEC - Free Report) reported first-quarter 2021 earnings per share of $1.61, which beat the Zacks Consensus Estimate of $1.47 by 9.5%.
FirstEnergy Corporation (FE - Free Report) recorded first-quarter 2021 operating earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 68 cents by 1.5%.
American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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