Back to top

Image: Bigstock

Ameren (AEE) Q4 Earnings Beat Estimates, Revenues Up Y/Y

Read MoreHide Full Article

Ameren Corporation’s (AEE - Free Report) fourth-quarter 2020 earnings of 46 cents per share from continuing operations exceeded the Zacks Consensus Estimate of 43 cents by 7%. Moreover, the reported figure rose 21% from the 38 cents reported in the year-ago quarter.

The company generated 2020 adjusted earnings of $3.50 per share from continuing operations, which missed the Zacks Consensus Estimate of $3.76 by 6.9%. The bottom line, however, improved 4.5% from the year-ago tally.

Total Revenues

Total revenues came in at $1,328 million in the reported quarter, which improved 0.9% year over year due to higher electric sales volumes. Revenues, however, missed the Zacks Consensus Estimate of $1,365 million by 2.7%.

In 2020, the company generated total revenues of $5,794 million, which slid 2% from the year-ago tally. The top-line figure also lagged the Zacks Consensus Estimate of $6,220 million by 6.8%.

Highlights of the Release

Ameren’s total electricity sales volumes declined 8.3% to 16,254 million kilowatt-hours (kWh) compared with 17,718 million kWh witnessed in the year-ago quarter. However, gas volumes contracted 11.1% to 56 million dekatherms.

Total operating expenses summed $1,117 million, down 1.8% year over year.

The company’s interest expenses in the fourth quarter were $108 million compared with the prior-year quarter’s $91 million.

Segment Results

The Ameren Missouri segment reported an operating income of $436 million in 2020 compared with the $426 million recorded in 2019. This year-over-year upside reflects new electric service rates effective Apr 1, 2020.

The Ameren Illinois Electric Distribution segment reported an operating income of $143 million in 2020 compared with $146 million registered in 2019. The year-over-year decline reflects a lower allowed return on equity due to a reduced average 30-year U.S. Treasury bond yield in 2020 compared to 2019.

The Ameren Illinois Natural Gas segment reported an operating income of $99 million in 2020 compared with $84 million generated in 2019. This year-over-year improvement reflects increased earnings on infrastructure investments and lower operations and maintenance expenses due to disciplined cost management.

The Ameren Transmission segment reported an operating income of $216 million in 2020 compared with the prior year’s $185 million. The upswing reflects increased earnings on infrastructure investments.

Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation price-consensus-eps-surprise-chart | Ameren Corporation Quote

Financial Condition

Ameren reported cash and cash equivalents of $139 million as of Dec 31, 2020, compared with $16 million registered at 2019-end.

As of Dec 31, 2020, long-term debt totaled $11,078 million compared with $8,915 million as of Dec 31, 2019.

In 2020, cash from operating activities amounted to $1,727 million compared with $2,170 million as of Dec 31, 2019.

Guidance

Ameren has issued its 2021 guidance. The company expects earnings in the range of $3.65-$3.85 per share. Currently, the Zacks Consensus Estimate for the ongoing-year earnings is pegged at $3.76 per share, higher than the midpoint of management’s guidance.

Ameren also affirmed its 2021 through 2025 compound annual earnings per share growth expectations of 6-8%.

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

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Published in