Ameren (AEE) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Ameren Corporation’s AEE third-quarter 2023 earnings of $1.87 per share surpassed the Zacks Consensus Estimate of $1.80 by 3.9%. The reported figure also increased 7.5% year over year.
The year-over-year rise in the bottom line was driven by increased infrastructure investments made across all business segments. New Ameren Missouri electric service rates, effective during the quarter, also contributed to the earnings growth.
Total Revenues
Total revenues came in at $2,060 million in the reported quarter, which decreased 10.7% year over year. Revenues also missed the Zacks Consensus Estimate of $2,373 million by 13.2%.
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 3.1% to 19,098 million kilowatt-hours (kWh) in the third quarter compared with the 19,702 million kWh in the year-ago quarter. Gas volumes decreased to 27 million dekatherms from 29 million dekatherms in the prior-year period.
Total operating expenses were $1,446 million, down 15.3% year over year. The company’s interest expenses in the third quarter were $152 million compared with the prior-year quarter’s $126 million.
Segmental Results
The Ameren Missouri segment reported earnings of $411 million in the third quarter compared with $397 million a year ago. The increase was due to higher infrastructure investments and new electric rates.
The Ameren Illinois Electric Distribution segment reported earnings of $66 million in the third quarter compared with $51 million registered in the year-ago period. The improvement highlighted increased infrastructure spending 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 incurred a loss of $5 million in the third quarter compared with a loss of $4 million in the year-ago quarter. The year-over-year deterioration can be attributed to higher depreciation and amortization expenses.
The Ameren Transmission segment reported earnings of $86 million in the third quarter compared with $78 million in the prior year, driven by increased earnings on infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $8 million as of Sep 30, 2023, compared with the cash balance of $10 million at the 2022-end.
As of Sep 30, 2023, the long-term debt totaled $13,829 million compared with $13,685 million as of Dec 31, 2022.
During the nine months ended Sep 30, 2023, the cash flow from operating activities amounted to $2,031 million compared with $1,599 million generated in the prior-year period.
Guidance
Ameren updated its 2023 guidance. AEE currently expects to generate earnings per share (EPS) in the range of $4.30-$4.45, narrower than the prior guidance range of $4.25-$4.45.
Currently, the Zacks Consensus Estimate for 2023 earnings is pegged at $4.37 per share. The figure is a tad below the midpoint of the company’s guidance.
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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