Ameren (AEE) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Ameren Corporation’s AEE second-quarter 2023 earnings of 90 cents per share surpassed the Zacks Consensus Estimate of 78 cents by 15.4%. The reported figure increased 12.5% year over year.
The year-over-year rise in the bottom line was driven by increased infrastructure investments made across all business segments. Further, the upside was positively impacted by lower Ameren Missouri and Ameren Illinois Natural Gas operation and maintenance expenses.
Total Revenues
Total revenues came in at $1,760 million in the reported quarter, which improved 1.9% year over year due to higher electric revenues. Revenues also beat the Zacks Consensus Estimate of $1,753 million by 0.4%.
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 7.4% to 16,246 million kilowatt-hours (kWh) in the second quarter compared with the 17,543 million kWh witnessed in the year-ago quarter. Gas volumes decreased to 175 million dekatherms from 213 million dekatherms in the prior-year period.
Total operating expenses were $1,431 million, up 0.9% year over year. The company’s interest expenses in the second quarter were $134 million compared with the prior-year quarter’s $126 million.
Segmental Results
The Ameren Missouri segment reported earnings of $102 million in the second quarter compared with the $100 million recorded in the year-ago period. The increase was due to increased infrastructure investments and lower operations and maintenance expenses.
The Ameren Illinois Electric Distribution segment reported earnings of $66 million in the second quarter of 2023 compared with the $51 million registered in the year-ago period. The year-over-year improvement highlighted increased earnings on infrastructure investments and a higher allowed return on equity due to a higher projected average 30-year U.S. Treasury bond yield in 2023.
The Ameren Illinois Natural Gas segment generated earnings of $11 million in the second quarter compared with $6 million in the year-ago period. The year-over-year improvement reflected earnings on increased infrastructure investments and lower operation and maintenance expenses.
The Ameren Transmission segment reported earnings of $72 million in the second quarter compared with $63 million in the prior year. The year-over-year rise reflected increased earnings on infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $7 million as of Jun 30, 2023, compared with the cash balance of $10 million at the 2022-end.
As of Jun 30, 2023, the long-term debt totaled $14,328 million compared with $13,685 million as of Dec 31, 2022.
During the six months ended Jun 30, 2023, the cash flow from operating activities amounted to $1,111 million compared with the $872 million generated in the prior-year period.
Guidance
Ameren reaffirmed its 2023 guidance. AEE expects to generate earnings per share (EPS) in the range of $4.25-$4.45.
Currently, the Zacks Consensus Estimate for 2023 earnings is pegged at $4.36 per share. The figure is a cent higher than 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
Public Service Enterprise Group Incorporated PEG, or PSEG, reported second-quarter 2023 adjusted operating earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 61 cents by 14.8%. Earnings also increased 9.4% from the prior-year reported figure.
Operating revenues came in at $2,421 million in the second quarter, which beat the Zacks Consensus Estimate of $2,025.6 million by 19.5%. The top line also increased by 16.6% from the year-ago quarter’s $2,076 million.
PG&E Corporation’s PCG adjusted EPS of 23 cents in the second quarter of 2023 lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line decreased 8% from the year-ago quarter’s reported figure.
In the second quarter, PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. CNP reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.
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