Yahoo Finance Ameren (AEE) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Ameren Corporation’s AEE first-quarter 2023 earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 94 cents by 6.4%. The reported figure increased 3.1% 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 $2,062 million in the reported quarter, which improved 9.7% year over year due to higher electric revenues. Revenues also beat the Zacks Consensus Estimate of $1,939 million by 6.4%.
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 14.8% to 16,865 million kilowatt-hours (kWh) in the first quarter compared with the 19,806 million kWh witnessed in the year-ago quarter. Gas volumes decreased to 68 million dekatherms from 80 million dekatherms in the prior-year period.
Total operating expenses were $1,711 million, up 10.5% year over year. The company’s interest expenses in the first quarter were $127 million compared with the prior-year quarter’s $104 million.
Segmental Results
The Ameren Missouri segment reported earnings of $28 million in the first quarter compared with the $50 million recorded in the year-ago period. The decrease was due to lower electric retail sales and higher interest expenses.
The Ameren Illinois Electric Distribution segment reported earnings of $61 million in the first quarter of 2023 compared with the $49 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 $87 million in the first quarter compared with $80 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 $71 million in the first quarter compared with $58 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 $10 million as of Mar 31, 2023, in line with the cash balance at the 2022-end.
As of Mar 31, 2023, the long-term debt totaled $14,181 million compared with $13,685 million as of Dec 31, 2022.
In the first quarter of 2023, the cash flow from operating activities amounted to $496 million compared with the $388 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 $4.35 per share. The figure is 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.
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