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

Ameren Corporation AEE is slated to report third-quarter 2022 results on Nov 4 after market close.

In the last reported quarter, the company delivered a negative earnings surprise of 1.23%. In the trailing four quarters, the company delivered a negative average earnings surprise of 0.59%.

Factors to Note

Ameren’s operational regions witnessed warm weather conditions accompanied by strong winds and tornados in the third quarter. Such weather patterns are expected to have generated a mixed impact on the company’s third-quarter revenues since warm weather might have boosted demand, while tornados might have caused outages.

Meanwhile, strong rate-based growth, buoyed by strategic infrastructure investments across all its business segments, might have aided AEE’s overall third-quarter revenues.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.90 billion, suggesting growth of 5% from the year-ago quarter.

From the cost perspective, higher operations and maintenance expenses, driven partly by unfavorable market returns and the absence of refined coal credits in 2022, might have hurt the bottom line of the company in the soon-to-be-reported quarter.

However, solid revenue growth and returns from investments in infrastructure and wind generation might have contributed to overall third-quarter earnings.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.72 per share, indicating an improvement of 4.2% from the prior-year reported figure.

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

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Ameren this time. 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, which is the case here.

Earnings ESP: AEE’s Earnings ESP is +1.41%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are three other utility stocks you may want to consider as these also have the right combination of elements to post an earnings beat this season:

Pinnacle West Capital Corporation PNW has an Earnings ESP of +1.66% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter earnings, pegged at $2.62 per share, implies a decline of 12.7% from the prior-year quarter’s tally.

PNW has a four-quarter earnings surprise of 115.48%. The Zacks Consensus Estimate for Pinnacle’s third-quarter sales suggests a growth rate of 0.6% from the prior-year quarter’s tally.

The AES Corporation AES has an Earnings ESP of +3.42% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter earnings, pegged at 54 cents per share, suggests growth of 8% from the prior-year quarter’s tally.

The Zacks Consensus Estimate for AES’ third-quarter sales implies a growth rate of 2.7% from the prior-year quarter to $3.12 billion. AES has a four-quarter earnings surprise of 4.19%.

TransAlta Corporation TAC has an Earnings ESP of +33.56% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter earnings, pegged at 24 cents per share, suggests a decline of 31.4% from the prior-year quarter’s tally.

TAC delivered a negative earnings surprise of 300% in the last reported quarter. It has a four-quarter earnings surprise of 32.81%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Ameren Corporation (AEE) : Free Stock Analysis Report
 
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
 
The AES Corporation (AES) : Free Stock Analysis Report
 
TransAlta Corporation (TAC) : Free Stock Analysis Report
 
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