Back to top

Image: Bigstock

Ameren (AEE) to Report Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

Ameren Corporation (AEE - Free Report) is slated to report fourth-quarter 2021 results on Feb 18, after the closing bell.

In the last-reported quarter, the company delivered an earnings surprise of 1.85%. Ameren has a trailing four-quarter earnings surprise of 6.65%, on average.

Factors to Note

Ameren’s operational regions witnessed a mixed weather pattern during the fourth quarter. While at the onset of the quarter, the company’s service territories experienced above- normal temperature, a colder-than-normal temperature was witnessed during the rest of the quarter. These weather conditions are expected to have had a mixed impact on the company’s revenues in the to-be-reported quarter.

Also, the positive outcome from Ameren’s previously made rate revision requests for its electric transmission and distribution is projected to have boosted its quarterly top-line performance.

Ameren Corporation Price and EPS Surprise

Ameren Corporation Price and EPS Surprise

Ameren Corporation price-eps-surprise | Ameren Corporation Quote

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.39 billion, suggesting growth of 4.6% from the year-ago quarter.

Solid rate base growth, particularly driven by a change in seasonal electric rate design, resulting from the March 2020 rate order, must have boosted Ameren’s earnings in the fourth quarter. Also, increased investments in infrastructure and wind generation eligible for plant and service accounting and the renewable energy standard rate adjustment mechanism are projected to have bolstered its bottom-line performance.

These factors along with the company’s diligent cost reduction programs as well as solid revenue growth projections may have contributed to Ameren’s earnings growth in the fourth quarter.  

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 50 cents per share, indicating growth of 8.7% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Ameren this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: The company’s Earnings ESP is +2.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ameren currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are three Utility players that you may want to consider as they have the right combination of elements to post an earnings beat this season:

Consolidated Edison (ED - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Consolidated Edison’s fourth-quarter sales and earnings is pegged at $2.97 billion and 85 cents per share, respectively. ED boasts a long-term earnings growth rate of 2%.

Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 3.6%.

The Zacks Consensus Estimate for Public Service Enterprise Group’s fourth-quarter sales and earnings is pegged at $2.63 billion and 68 cents per share, respectively. PEG has a four-quarter average earnings surprise of 4.57%.

American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2. AEP has a four-quarter average earnings surprise of 1.61%.

American Electric boasts a long-term earnings growth rate of 5.6%. The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.