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Ameren Gears Up to Report Q3 Earnings: What's in the Cards?

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Ameren Corporation (AEE - Free Report) is scheduled to release third-quarter 2024 results on Nov. 6, after market close. This utility company delivered an earnings surprise of 4.30% in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company delivered an average negative earnings surprise of 0.89% in the trailing four quarters.

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of AEE’s Result

AEE’s service territories witnessed above-normal weather pattern for the majority of the third quarter. This is likely to have boosted electricity demand from its consumers for cooling purposes this summer, which, in turn, is likely to have bolstered the company’s top-line performance.

Ameren Corporation Price and EPS Surprise

Ameren Corporation Price and EPS Surprise

Ameren Corporation price-eps-surprise | Ameren Corporation Quote

Strong customer growth at its Ameren Missouri and Ameren Illinois subsidiaries, driven by the increasing data center demand, is also likely to have also added an impetus to AEE’s revenues.

However, some parts of its service areas witnessed severe rain and windstorms, which caused outages for some of AEE’s customers and also brought damage to its infrastructure system from large trees and limbs that came into contact with its equipment. These damages are expected to have pushed up its operating expenses for restoration, thereby adversely impacting its third-quarter earnings.

Higher operating and maintenance expenses due to the scheduled retirement of the Rush Island Energy Center are likely to have adversely impacted the overall bottom-line performance.

Nevertheless, solid revenue expectations, along with favorable contributions from strategic infrastructure investments and AEE’s disciplined cost management, are likely to have bolstered overall earnings.

AEE’s Q3 Expectations

The Zacks Consensus Estimate for AEE’s third-quarter revenues is $2.21 billion, which indicates an increase of 7.2% from the year-ago number.

The consensus estimate for earnings is pegged at $1.91 per share, which indicates an increase of 2.1% from the prior-year quarter’s figure.

What Our Model Predicts for AEE

Our proven model does not conclusively predict 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 odds of an earnings beat, which is not the case here as seen below.

Earnings ESP: The company’s Earnings ESP is -0.97%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 2. You can see the complete list of Zacks Rank #1 stocks here.

Stocks to Consider

Investors can consider the following players from the same industry, which have the right combination of elements to post an earnings beat in their quarterly results.

PG&E Corporation (PCG - Free Report) is scheduled to report its third-quarter 2024 results on Nov. 7, before market open. It has an Earnings ESP of +6.35% and a Zacks Rank of 3 at present.

The consensus estimate for sales is pegged at $6.67 billion, which indicates a 13.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 32 cents per share, which indicates year-over-year growth of 33.3%.

American Electric Power (AEP - Free Report) is slated to release its third-quarter results on Nov. 6. It has an Earnings ESP of +0.94% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $5.39 billion, which indicates a 1.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $1.78 per share, which indicates year-over-year growth of 0.6%.

Pinnacle West Capital (PNW - Free Report) is scheduled to announce its third-quarter results on Nov. 6. It has an Earnings ESP of +2.96% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $1.68 billion, which indicates a 2.6% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at $3.35 per share.

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