We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ameren Corporation’s (AEE - Free Report) third-quarter 2022 earnings of $1.74 per share surpassed the Zacks Consensus Estimate of $1.72 by 1.2%. The reported figure increased 5.5% year over year.
The year-over-year bottom line was driven by increased infrastructure investments made across all business segments. Further, the upside was backed by the solid execution of the company's strategy and a positive impact of the new Ameren Missouri electric service rates, effective Feb 28, 2022.
Total Revenues
Total revenues came in at $2,306 million in the reported quarter, which improved 27.3% year over year due to higher electric and natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $1,901 million by 21.3%.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren’s total electricity sales volumes declined 3.8% to 19,702 million kilowatt-hours (kWh) compared with the 20,474 million kWh witnessed in the year-ago quarter. Gas volumes remained unchanged at 29 million dekatherms.
Total operating expenses were $1,707 million, up 33.7% year over year.
The company’s interest expenses in the third quarter were $126 million compared with the prior-year quarter’s $94 million.
Segment Results
The Ameren Missouri segment reported earnings of $397 million in the third quarter of 2022 compared with $375 million recorded in the year-ago period. The increase was attributable to the new electric service rates, effective Feb 28, 2022, and higher electric retail sales.
The Ameren Illinois Electric Distribution segment reported earnings of $51 million in the third quarter of 2022 compared with $36 million registered in the year-ago period.
The year-over-year improvement was driven by increased earnings on infrastructure investments and a higher allowed return on equity based on a higher expected average 30-year U.S. Treasury bond yield in 2022 compared with 2021.
The Ameren Illinois Natural Gas segment generated a loss of $4 million in the third quarter of 2022 compared with $8 million in the year-ago period. The year-over-year improvement reflected earnings on increased infrastructure investments.
The Ameren Transmission segment reported earnings of $78 million in the third quarter of 2022 compared with $73 million in the prior year. The rise can be attributed to higher earnings from infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $7 million as of Sep 30, 2022 compared with $8 million registered at the 2021-end.
As of Sep 30, 2022, the long-term debt totaled $13,577 million compared with $12,562 million as of Dec 31, 2021.
During the first nine months of 2022, the cash flow from operating activities amounted to $1,599 million compared with $1,192 million generated in the prior-year period.
Guidance
Ameren updated its 2022 guidance. AEE now expects to generate earnings per share (EPS) in the range of $4.00-$4.15 compared with the prior range of $3.95-$4.15.
Currently, the Zacks Consensus Estimate for 2022 earnings is pegged at $4.08 per share, in line with the midpoint of the guidance range.
Edison International (EIX - Free Report) reported third-quarter 2022 adjusted earnings of $1.48 per share, which came in line with the Zacks Consensus Estimate. However, the bottom declined 12.4% from $1.69 in the year-ago quarter.
Edison International's third-quarter revenues totaled $5,228 million, which surpassed the Zacks Consensus Estimate of $4,988 million by 4.8%. However, the top line declined 1.3% from the year-ago quarter’s $5,299 million.
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved by 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved by 21.3% from the year-ago quarter’s $4,522.6 million.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ameren (AEE) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Ameren Corporation’s (AEE - Free Report) third-quarter 2022 earnings of $1.74 per share surpassed the Zacks Consensus Estimate of $1.72 by 1.2%. The reported figure increased 5.5% year over year.
The year-over-year bottom line was driven by increased infrastructure investments made across all business segments. Further, the upside was backed by the solid execution of the company's strategy and a positive impact of the new Ameren Missouri electric service rates, effective Feb 28, 2022.
Total Revenues
Total revenues came in at $2,306 million in the reported quarter, which improved 27.3% year over year due to higher electric and natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $1,901 million by 21.3%.
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 3.8% to 19,702 million kilowatt-hours (kWh) compared with the 20,474 million kWh witnessed in the year-ago quarter. Gas volumes remained unchanged at 29 million dekatherms.
Total operating expenses were $1,707 million, up 33.7% year over year.
The company’s interest expenses in the third quarter were $126 million compared with the prior-year quarter’s $94 million.
Segment Results
The Ameren Missouri segment reported earnings of $397 million in the third quarter of 2022 compared with $375 million recorded in the year-ago period. The increase was attributable to the new electric service rates, effective Feb 28, 2022, and higher electric retail sales.
The Ameren Illinois Electric Distribution segment reported earnings of $51 million in the third quarter of 2022 compared with $36 million registered in the year-ago period.
The year-over-year improvement was driven by increased earnings on infrastructure investments and a higher allowed return on equity based on a higher expected average 30-year U.S. Treasury bond yield in 2022 compared with 2021.
The Ameren Illinois Natural Gas segment generated a loss of $4 million in the third quarter of 2022 compared with $8 million in the year-ago period. The year-over-year improvement reflected earnings on increased infrastructure investments.
The Ameren Transmission segment reported earnings of $78 million in the third quarter of 2022 compared with $73 million in the prior year. The rise can be attributed to higher earnings from infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $7 million as of Sep 30, 2022 compared with $8 million registered at the 2021-end.
As of Sep 30, 2022, the long-term debt totaled $13,577 million compared with $12,562 million as of Dec 31, 2021.
During the first nine months of 2022, the cash flow from operating activities amounted to $1,599 million compared with $1,192 million generated in the prior-year period.
Guidance
Ameren updated its 2022 guidance. AEE now expects to generate earnings per share (EPS) in the range of $4.00-$4.15 compared with the prior range of $3.95-$4.15.
Currently, the Zacks Consensus Estimate for 2022 earnings is pegged at $4.08 per share, in line with the midpoint of the guidance 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
Edison International (EIX - Free Report) reported third-quarter 2022 adjusted earnings of $1.48 per share, which came in line with the Zacks Consensus Estimate. However, the bottom declined 12.4% from $1.69 in the year-ago quarter.
Edison International's third-quarter revenues totaled $5,228 million, which surpassed the Zacks Consensus Estimate of $4,988 million by 4.8%. However, the top line declined 1.3% from the year-ago quarter’s $5,299 million.
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved by 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved by 21.3% from the year-ago quarter’s $4,522.6 million.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.