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Ameren (AEE) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Ameren Corporation’s AEE third-quarter 2022 earnings of $1.74 per share surpassed the Zacks Consensus Estimate of $1.72 by 1.2%. The reported figure increased 5.5% year over year.

The year-over-year bottom line was driven by increased infrastructure investments made across all business segments. Further, the upside was backed by the solid execution of the company's strategy and a positive impact of the new Ameren Missouri electric service rates, effective Feb 28, 2022.

Total Revenues

Total revenues came in at $2,306 million in the reported quarter, which improved 27.3% year over year due to higher electric and natural gas revenues. Revenues also beat the Zacks Consensus Estimate of $1,901 million by 21.3%.

Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation Price, Consensus and EPS Surprise
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 3.8% to 19,702 million kilowatt-hours (kWh) compared with the 20,474 million kWh witnessed in the year-ago quarter. Gas volumes remained unchanged at 29 million dekatherms.

Total operating expenses were $1,707 million, up 33.7% year over year.

The company’s interest expenses in the third quarter were $126 million compared with the prior-year quarter’s $94 million.

Segment Results

The Ameren Missouri segment reported earnings of $397 million in the third quarter of 2022 compared with $375 million recorded in the year-ago period. The increase was attributable to the new electric service rates, effective Feb 28, 2022, and higher electric retail sales.

The Ameren Illinois Electric Distribution segment reported earnings of $51 million in the third quarter of 2022 compared with $36 million registered in the year-ago period.

The year-over-year improvement was driven by increased earnings on infrastructure investments and a higher allowed return on equity based on a higher expected average 30-year U.S. Treasury bond yield in 2022 compared with 2021.

The Ameren Illinois Natural Gas segment generated a loss of $4 million in the third quarter of 2022 compared with $8 million in the year-ago period. The year-over-year improvement reflected earnings on increased infrastructure investments.

The Ameren Transmission segment reported earnings of $78 million in the third quarter of 2022 compared with $73 million in the prior year. The rise can be attributed to higher earnings from infrastructure investments.

Financial Condition

Ameren reported cash and cash equivalents of $7 million as of Sep 30, 2022 compared with $8 million registered at the 2021-end.

As of Sep 30, 2022, the long-term debt totaled $13,577 million compared with $12,562 million as of Dec 31, 2021.

During the first nine months of 2022, the cash flow from operating activities amounted to $1,599 million compared with $1,192 million generated in the prior-year period.

Guidance

Ameren updated its 2022 guidance. AEE now expects to generate earnings per share (EPS) in the range of $4.00-$4.15 compared with the prior range of $3.95-$4.15.

Currently, the Zacks Consensus Estimate for 2022 earnings is pegged at $4.08 per share, in line with 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

Edison International EIX reported third-quarter 2022 adjusted earnings of $1.48 per share, which came in line with the Zacks Consensus Estimate. However, the bottom declined 12.4% from $1.69 in the year-ago quarter.

Edison International's third-quarter revenues totaled $5,228 million, which surpassed the Zacks Consensus Estimate of $4,988 million by 4.8%. However, the top line declined 1.3% from the year-ago quarter’s $5,299 million.

American Electric Power Company, Inc. AEP reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved by 13.3% from $1.43 per share in the year-ago quarter.

American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved by 21.3% from the year-ago quarter’s $4,522.6 million.

DTE Energy Company DTE reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.

The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.


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