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Ameren (AEE) Q4 Earnings Miss Estimates, Revenues Fall Y/Y
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Ameren Corporation’s (AEE - Free Report) fourth-quarter 2023 earnings of 60 cents per share missed the Zacks Consensus Estimate of 61 cents by 1.6%. The reported figure also decreased 4.8% year over year.
The year-over-year decline in the bottom line was on account of lower Ameren Missouri electric retail sales, driven primarily by milder-than-normal winter temperatures compared with colder-than-normal winter temperatures in the year-ago quarter. Higher interest expenses at Ameren Parent also negatively impacted the year-over-year bottom-line performance.
For 2023, AEE reported earnings of $4.38 per share, which missed the Zacks Consensus Estimate of $4.39 by 0.2%. The reported figure, however, increased 5.8% year over year.
Ameren Corporation Price, Consensus and EPS Surprise
Total revenues came in at $1,618 million in the reported quarter, down 20.9% year over year. Revenues also missed the Zacks Consensus Estimate of $2,083 million by 22.3%.
For 2023, the company generated revenues worth $7.50 billion, down 5.7% year over year. Revenues also missed the Zacks Consensus Estimate of $7.97 billion.
Highlights of the Release
Ameren’s total electricity sales volumes declined 8.8% to 15,760 million kilowatt-hours (kWh) in the fourth quarter compared with 17,277 million kWh in the year-ago period. Gas volumes decreased from 60 million dekatherms in the prior-year period to 54 million.
Total operating expenses were $1,354 million, down 23.5% year over year. The company’s interest expenses in the fourth quarter totaled $153 million compared with the prior-year quarter’s $130 million.
Segmental Results
The Ameren Missouri segment reported earnings of $545 million in 2023 compared with $562 million a year ago. The year-over-year decline was due to lower electric retail sales, driven primarily by weather, lower energy efficiency performance incentives and higher interest expense.
The Ameren Illinois Electric Distribution segment reported earnings of $258 million in 2023 compared with $202 million in 2022. The improvement was driven by increased earnings on infrastructure investments and a higher allowed return on equity (due to a higher average 30-year U.S. Treasury bond yield in 2023) than the 2022 level.
The Ameren Illinois Natural Gas segment reported earnings of $134 million in 2023 compared with $123 million in the prior year. The year-over-year improvement was driven by increased earnings on infrastructure investments and lower operations and maintenance expenses.
The Ameren Transmission segment reported earnings of $296 million in 2023 compared with $263 million in the prior year, driven by increased earnings on infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $25 million as of Dec 31, 2023, compared with $10 million at the end of 2022.
As of Dec 31, 2023, the long-term debt totaled $15,121 million compared with $13,685 million as of Dec 31, 2022.
During 2023, the cash flow from operating activities amounted to $2,564 million compared with $2,263 million in the previous year.
Guidance
Ameren initiated its 2024 guidance. It expects to generate earnings per share (EPS) in the range of $4.52-$4.72. Currently, the Zacks Consensus Estimate for 2024 earnings is pegged at $4.60 per share, slightly below the midpoint of the company’s guided range.
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.
DTE Energy initiated its 2024 guidance for operating EPS. The company expects operating EPS in the range of $6.54-$6.83.
Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.
The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.
Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.
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Ameren (AEE) Q4 Earnings Miss Estimates, Revenues Fall Y/Y
Ameren Corporation’s (AEE - Free Report) fourth-quarter 2023 earnings of 60 cents per share missed the Zacks Consensus Estimate of 61 cents by 1.6%. The reported figure also decreased 4.8% year over year.
The year-over-year decline in the bottom line was on account of lower Ameren Missouri electric retail sales, driven primarily by milder-than-normal winter temperatures compared with colder-than-normal winter temperatures in the year-ago quarter. Higher interest expenses at Ameren Parent also negatively impacted the year-over-year bottom-line performance.
For 2023, AEE reported earnings of $4.38 per share, which missed the Zacks Consensus Estimate of $4.39 by 0.2%. The reported figure, however, increased 5.8% year over year.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote
Total Revenues
Total revenues came in at $1,618 million in the reported quarter, down 20.9% year over year. Revenues also missed the Zacks Consensus Estimate of $2,083 million by 22.3%.
For 2023, the company generated revenues worth $7.50 billion, down 5.7% year over year. Revenues also missed the Zacks Consensus Estimate of $7.97 billion.
Highlights of the Release
Ameren’s total electricity sales volumes declined 8.8% to 15,760 million kilowatt-hours (kWh) in the fourth quarter compared with 17,277 million kWh in the year-ago period. Gas volumes decreased from 60 million dekatherms in the prior-year period to 54 million.
Total operating expenses were $1,354 million, down 23.5% year over year. The company’s interest expenses in the fourth quarter totaled $153 million compared with the prior-year quarter’s $130 million.
Segmental Results
The Ameren Missouri segment reported earnings of $545 million in 2023 compared with $562 million a year ago. The year-over-year decline was due to lower electric retail sales, driven primarily by weather, lower energy efficiency performance incentives and higher interest expense.
The Ameren Illinois Electric Distribution segment reported earnings of $258 million in 2023 compared with $202 million in 2022. The improvement was driven by increased earnings on infrastructure investments and a higher allowed return on equity (due to a higher average 30-year U.S. Treasury bond yield in 2023) than the 2022 level.
The Ameren Illinois Natural Gas segment reported earnings of $134 million in 2023 compared with $123 million in the prior year. The year-over-year improvement was driven by increased earnings on infrastructure investments and lower operations and maintenance expenses.
The Ameren Transmission segment reported earnings of $296 million in 2023 compared with $263 million in the prior year, driven by increased earnings on infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $25 million as of Dec 31, 2023, compared with $10 million at the end of 2022.
As of Dec 31, 2023, the long-term debt totaled $15,121 million compared with $13,685 million as of Dec 31, 2022.
During 2023, the cash flow from operating activities amounted to $2,564 million compared with $2,263 million in the previous year.
Guidance
Ameren initiated its 2024 guidance. It expects to generate earnings per share (EPS) in the range of $4.52-$4.72. Currently, the Zacks Consensus Estimate for 2024 earnings is pegged at $4.60 per share, slightly below the midpoint of the company’s guided 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
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.
DTE Energy initiated its 2024 guidance for operating EPS. The company expects operating EPS in the range of $6.54-$6.83.
Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.
The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.
Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.