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Ameren (AEE) Q2 Earnings Miss Estimates, Revenues Down Y/Y
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Ameren Corporation’s (AEE - Free Report) second-quarter 2019 earnings of 72 cents per share from continuing operations missed the Zacks Consensus Estimate of 75 cents by 4%. The bottom line also declined 25.8% from the year-ago quarter’s 97 cents.
Total Revenues
Total revenues came in at $1,379 million in the reported quarter, which declined 11.8% year over year owing to lower electric and natural gas sales volumes. The reported figure also missed the Zacks Consensus Estimate of $1,432 million by 3.7%.
Highlights of the Release
Ameren’s total electricity sales volumes declined 16.2% to 16,339 million kilowatt hours (kWh) compared with 19,494 million kWh in the year-ago quarter. However, gas volumes expanded 6.5% to 82 million dekatherms.
Total operating expenses summed $1,099 million, down 6.7% year over year from $1,178 million. Interest expenses were $97 million compared with $100 million a year ago.
The company’s operating income declined 27% to $280 million from $385 million in the year-ago quarter.
Segment Results
The Ameren Missouri segment reported operating income of $107 million in the second quarter compared with $168 million in the year-ago quarter. The year-over-year decline reflected lower electric retail sales, which negatively impacted earnings by approximately $53 million primarily due to mild early-summer temperatures compared to extremely warm early-summer temperatures in the year-ago period.
The Ameren Illinois Electric Distribution segment reported operating income of $37 million in the second quarter compared with $33 million in the year-ago quarter. The year-over-year improvement reflected increased earnings on infrastructure investments
The Ameren Illinois Natural Gas segment reported operating income of $1 million compared with $7 million in the year-ago quarter. The year-over-year decline was primarily due to a change in rate design, which is not expected to impact full-year results.
The Ameren Transmission segment reported operating income of $42 million in the second quarter compared with $36 million in the year-ago quarter. The year-over-year improvement reflected increased earnings on infrastructure investments.
Ameren Corporation Price, Consensus and EPS Surprise
The company reported cash and cash equivalents of $6 million as on Jun 30, 2019, compared with $16 million at 2018 end.
As of Jun 30, 2019, long-term debt totaled $8,222 million compared with $7,859 million as on Dec 31, 2018.
In the first half of 2019, cash from operating activities amounted to $879 million compared with $820 generated in the first half of 2018.
Guidance
Ameren reaffirms its 2019 guidance. The company expects earnings of $3.15-$3.35 per share, which is projected to grow at a 6-8% compound annual rate from 2018 through 2023. Currently, the Zacks Consensus Estimate for the company’s 2019 earnings is pegged at $3.26, which lies above the mid-point of the company’s guided range.
American Electric Power Co., Inc. (AEP - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.
NextEra Energy (NEE - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, earnings were up 12.9% on a year-over-year basis.
CMS Energy Corporation (CMS - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of 33 cents, down 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.
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Ameren (AEE) Q2 Earnings Miss Estimates, Revenues Down Y/Y
Ameren Corporation’s (AEE - Free Report) second-quarter 2019 earnings of 72 cents per share from continuing operations missed the Zacks Consensus Estimate of 75 cents by 4%. The bottom line also declined 25.8% from the year-ago quarter’s 97 cents.
Total Revenues
Total revenues came in at $1,379 million in the reported quarter, which declined 11.8% year over year owing to lower electric and natural gas sales volumes. The reported figure also missed the Zacks Consensus Estimate of $1,432 million by 3.7%.
Highlights of the Release
Ameren’s total electricity sales volumes declined 16.2% to 16,339 million kilowatt hours (kWh) compared with 19,494 million kWh in the year-ago quarter. However, gas volumes expanded 6.5% to 82 million dekatherms.
Total operating expenses summed $1,099 million, down 6.7% year over year from $1,178 million. Interest expenses were $97 million compared with $100 million a year ago.
The company’s operating income declined 27% to $280 million from $385 million in the year-ago quarter.
Segment Results
The Ameren Missouri segment reported operating income of $107 million in the second quarter compared with $168 million in the year-ago quarter. The year-over-year decline reflected lower electric retail sales, which negatively impacted earnings by approximately $53 million primarily due to mild early-summer temperatures compared to extremely warm early-summer temperatures in the year-ago period.
The Ameren Illinois Electric Distribution segment reported operating income of $37 million in the second quarter compared with $33 million in the year-ago quarter. The year-over-year improvement reflected increased earnings on infrastructure investments
The Ameren Illinois Natural Gas segment reported operating income of $1 million compared with $7 million in the year-ago quarter. The year-over-year decline was primarily due to a change in rate design, which is not expected to impact full-year results.
The Ameren Transmission segment reported operating income of $42 million in the second quarter compared with $36 million in the year-ago quarter. The year-over-year improvement reflected increased earnings on infrastructure investments.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote
Financial Condition
The company reported cash and cash equivalents of $6 million as on Jun 30, 2019, compared with $16 million at 2018 end.
As of Jun 30, 2019, long-term debt totaled $8,222 million compared with $7,859 million as on Dec 31, 2018.
In the first half of 2019, cash from operating activities amounted to $879 million compared with $820 generated in the first half of 2018.
Guidance
Ameren reaffirms its 2019 guidance. The company expects earnings of $3.15-$3.35 per share, which is projected to grow at a 6-8% compound annual rate from 2018 through 2023. Currently, the Zacks Consensus Estimate for the company’s 2019 earnings is pegged at $3.26, which lies above the mid-point of the company’s guided range.
Zacks Rank
Ameren currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
American Electric Power Co., Inc. (AEP - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.
NextEra Energy (NEE - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, earnings were up 12.9% on a year-over-year basis.
CMS Energy Corporation (CMS - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of 33 cents, down 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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