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Ameren (AEE) to Report Q3 Earnings: What's in the Cards?

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Zacks Equity Research
·3 min read
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Ameren Corporation AEE is scheduled to release third-quarter 2020 results on Nov 4. In the last reported quarter, this utility delivered a positive earnings surprise of 3.16%.

In the trailing four quarters, the company came up with a positive earnings surprise of 2.38%, on average.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

During the third quarter, Ameren’s service territories witnessed mixed weather patterns. While above-average precipitation was observed in some parts, abnormally dry weather condition affected other parts. Moreover, strong storm activities accompanied with wind gusts might have influenced the company’s third-quarter performance.

It is thus difficult to determine the extent of the impact of weather conditions on the company's third-quarter results.

Ameren Corporation Price and EPS Surprise

Ameren Corporation Price and EPS Surprise
Ameren Corporation Price and EPS Surprise

Ameren Corporation price-eps-surprise | Ameren Corporation Quote

 

Moreover, new electric service rates in Ameren Missouri became effective April 2020, as a result of a constructive settlement in Ameren Missouri's electric rate review, which reflects a $32 million annual revenue decrease. This is expected to have lowered electric sales during the to-be-reported quarter.

Nevertheless, robust energy infrastructure investments made by the company across its business segments are projected to have contributed substantially to its quarterly revenue growth.    

The Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $1.72 billion, implying a 3.5% rise from the year-ago quarter’s reported figure.

The company’s prior estimation of generating lower earnings during 2020 on account of COVID-19 impacts might get reflected in the upcoming results. Moreover, frequent storms like Hurricane Laura, which its service territories suffered, are expected to have affected some of the company’s infrastructure, along with causing widespread power outages. This is expected to have pushed up Ameren’s quarterly expenses in the form of higher storm restoration expenses, thereby hurting its earnings.  

The Zacks Consensus Estimate for Ameren’s earnings in the third quarter is pegged at $1.44, suggesting a 2% decline from the year-ago quarter’s reported number.

Earnings Whispers

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 chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ameren carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Utility Releases

Entergy ETR reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.

American Electric Power AEP reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

NextEra Energy NEE reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

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