Back to top

Image: Bigstock

Ameren Corp. (AEE) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Ameren Corporation (AEE - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 19, after market close. In the last reported quarter, this utility delivered an earnings surprise of 2.08%.

In the trailing four quarters, the company came up with an earnings surprise of 2.73%, on average.

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

Factors at Play

Ameren’s operational regions witnessed fairly cold temperatures during most of the fourth quarter, along with occasional snowfall. Such weather conditions might have spurred electricity demand from the utility’s consumers, which in turn is expected to have boosted its revenues during the period under consideration.

Furthermore, the weather-normalized kilowatt-hour sales to residential customers in Illinois increased a little more than 2.5% for the first nine months of 2020. We expect a similar trend to have followed in the fourth quarter as well, thus boosting overall sales.

The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $1.37 billion, implying a 3.8% rise from the year-ago quarter’s reported figure.

Such revenue growth expectations make us optimistic about the company’s potential in having delivered earnings growth in the fourth quarter. Moreover, increased electric service rates effective April 2020 are expected to have had a positive impact on the company’s bottom-line performance. Also, robust rate base growth and disciplined cost management are projected to have bolstered Ameren’s earnings in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Ameren’s earnings in the fourth quarter is pegged at 43 cents, suggesting a 13.2% rise 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: Ameren has an Earnings ESP of -2.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Ameren Corporation Price and Consensus

Stocks to Consider

Here are a few stocks from the Utilities sector that are yet to release their Q4 results and possess the right combination to deliver an earnings beat.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3.

Pacific Gas & Electric Company (PCG - Free Report) has an Earnings ESP of +10.53% and a Zacks Rank #3.

Public Service Enterprise Group (PEG - Free Report) has an Earnings ESP of +4.81% and a Zacks Rank #3.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>

Published in