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Ameren (AEE) Q1 Earnings Miss Estimates, Revenues Down Y/Y

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Ameren Corporation (AEE - Free Report) reported first-quarter 2024 earnings of 98 cents per share, which missed the Zacks Consensus Estimate of $1.09 per share by 10.1%. The reported figure also decreased 2% year over year.

The year-over-year decline in the bottom line was owing to higher operations and maintenance expenses at Ameren Missouri, which included a charge related to the Rush Island Energy Center litigation, higher interest expenses at Ameren Missouri, lower tax benefits at Ameren Parent and a lower return on equity at Ameren Illinois Electric Distribution.

Ameren Corporation Price, Consensus and EPS Surprise Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote

Total Revenues

Total revenues came in at $1.82 billion in the reported quarter, down 11.9% year over year. Revenues also missed the Zacks Consensus Estimate of $2.20 billion by 17.5%.

Highlights of the Release

Ameren’s total electricity sales volumes increased 1.6% to 17,140 million kilowatt-hours (kWh) in the first quarter compared with 16,865 million kWh in the year-ago period. Gas volumes remained flat at 68 million dekatherms compared with the prior-year period.

Total operating expenses were $1.45 billion, down 15.5% year over year. The company’s interest expenses in the fourth quarter totaled $154 million compared with the prior-year quarter’s $127 million.

Segmental Results

The Ameren Missouri segment reported earnings of $25 million in the first quarter of 2024 compared with $28 million a year ago. The year-over-year decline was due to milder winter temperatures compared to the year-ago period and higher operations and maintenance expenses.

The Ameren Illinois Electric Distribution segment reported earnings of $56 million in the first quarter of 2024 compared with $61 million a year ago. The decline was driven by a lower allowed return on equity for 2024 under the new multi-year rate plan.

The Ameren Illinois Natural Gas segment reported earnings of $106 million in the first quarter of 2024 compared with $87 million in the prior year. The year-over-year increase can be attributed to new delivery service rates and rate design effective Nov 28, 2023.

The Ameren Transmission segment reported earnings of $72 million in the first quarter of 2024 compared with $71 million in the prior year, driven by increased earnings on infrastructure investments.

Financial Condition

Ameren reported cash and cash equivalents of $85 million as of Mar 31, 2024 compared with $25 million at the end of 2023.

As of Mar 31, 2024, the long-term debt totaled $15.17 billion compared with $15.12 billion as of Dec 31, 2023.

As of Mar 31, 2024, the cash flow from operating activities amounted to $492 million compared with $496 million in the previous year.

Guidance

Ameren reiterated its 2024 guidance. It still 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 $4.59 per share, which is 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.

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