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Ameren (AEE) Q2 Earnings Beat Estimates, Revenues Down Y/Y
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Ameren Corporation (AEE - Free Report) reported second-quarter 2024 earnings of 97 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 4.3%. The reported figure also improved 7.8% year over year.
The year-over-year improvement in the bottom line was driven by earnings generated from increased infrastructure investments, higher Ameren Missouri electric retail sales as well as new Ameren Missouri electric service rates.
Revenues
Total revenues came in at $1.69 billion in the reported quarter, down 3.8% year over year. Revenues also missed the Zacks Consensus Estimate of $1.88 billion by 9.9%.
Ameren Corporation Price, Consensus and EPS Surprise
Ameren’s total electricity sales volumes increased 5.3% to 17,110 million kilowatt-hours (kWh) compared with 16,246 million kWh in the year-ago period. Gas volumes dropped 6.1% to 31 million dekatherms from the prior-year period’s level.
Total operating expenses were $1.33 billion, down 6.9% year over year. The company’s interest expenses in the second quarter totaled $165 million compared with the prior-year quarter’s $134 million.
Segmental Results
The Ameren Missouri segment reported earnings of $128 million compared with $102 million a year ago. The year-over-year improvement was driven by earnings from increased infrastructure investments, higher electric retail sales backed by warmer spring and early summer temperatures compared to the year-ago period, and new electric service rates effective Jul 9, 2023.
The Ameren Illinois Electric Distribution segment reported earnings of $61 million in the second quarter compared with $66 million a year ago. The decline was due to a lower allowed return on equity for 2024 under the new multi-year rate plan.
The Ameren Illinois Natural Gas segment reported earnings of $6 million in the second quarter compared with $11 million a year ago. The year-over-year decline can be attributed to the adverse impacts of rate design from new delivery service rates effective Nov 28, 2023.
The Ameren Transmission segment reported earnings of $79 million compared with $72 million in the prior-year period. The improvement was driven by increased earnings from infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $19 million as of Jun 30, 2024, compared with $25 million at the end of 2023.
As of Jun 30, 2024, the long-term debt totaled $16.28 billion compared with $15.12 billion as of Dec 31, 2023.
As of Jun 30, 2024, the cash flow from operating activities amounted to $1.04 billion compared with $1.11 billion a year ago.
Guidance
Ameren reiterated its 2024 guidance. It still expects to generate earnings per share (EPS) in the range of $4.52-$4.72. Currently, the Zacks Consensus Estimate for 2024 earnings is pegged at $4.61 per share, which is just below the midpoint of the company’s guided range.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2024 adjusted EPS of $1.25, which beat the Zacks Consensus Estimate of $1.23 by 1.6%. The bottom line also improved 10.6% from $1.13 recorded in the year-ago quarter.
Operating revenues of $4.73 billion rose 5.6% from the year-ago quarter’s level of $4.48 billion. American Electric reiterated its 2024 operating earnings guidance.
PG&E Corporation (PCG - Free Report) reported second-quarter 2024 adjusted EPS of 31 cents, which surpassed the Zacks Consensus Estimate of 30 cents by 3.3%. The bottom line also improved 34.8% from the year-ago quarter’s reported figure.
PCG reported second-quarter total revenues of $5.99 billion, up 13.2% from $5.29 billion registered in the year-ago period. Operating revenues also surpassed the Zacks Consensus Estimate of $5.83 billion by 2.7%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line also rose nearly 9.1% year over year.
Operating revenues amounted to $6.06 billion, which lagged the Zacks Consensus Estimate of $7.26 billion by 16.8%. The top line plunged 17.4% year over year.
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Ameren (AEE) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Ameren Corporation (AEE - Free Report) reported second-quarter 2024 earnings of 97 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 4.3%. The reported figure also improved 7.8% year over year.
The year-over-year improvement in the bottom line was driven by earnings generated from increased infrastructure investments, higher Ameren Missouri electric retail sales as well as new Ameren Missouri electric service rates.
Revenues
Total revenues came in at $1.69 billion in the reported quarter, down 3.8% year over year. Revenues also missed the Zacks Consensus Estimate of $1.88 billion by 9.9%.
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 increased 5.3% to 17,110 million kilowatt-hours (kWh) compared with 16,246 million kWh in the year-ago period. Gas volumes dropped 6.1% to 31 million dekatherms from the prior-year period’s level.
Total operating expenses were $1.33 billion, down 6.9% year over year. The company’s interest expenses in the second quarter totaled $165 million compared with the prior-year quarter’s $134 million.
Segmental Results
The Ameren Missouri segment reported earnings of $128 million compared with $102 million a year ago. The year-over-year improvement was driven by earnings from increased infrastructure investments, higher electric retail sales backed by warmer spring and early summer temperatures compared to the year-ago period, and new electric service rates effective Jul 9, 2023.
The Ameren Illinois Electric Distribution segment reported earnings of $61 million in the second quarter compared with $66 million a year ago. The decline was due to a lower allowed return on equity for 2024 under the new multi-year rate plan.
The Ameren Illinois Natural Gas segment reported earnings of $6 million in the second quarter compared with $11 million a year ago. The year-over-year decline can be attributed to the adverse impacts of rate design from new delivery service rates effective Nov 28, 2023.
The Ameren Transmission segment reported earnings of $79 million compared with $72 million in the prior-year period. The improvement was driven by increased earnings from infrastructure investments.
Financial Condition
Ameren reported cash and cash equivalents of $19 million as of Jun 30, 2024, compared with $25 million at the end of 2023.
As of Jun 30, 2024, the long-term debt totaled $16.28 billion compared with $15.12 billion as of Dec 31, 2023.
As of Jun 30, 2024, the cash flow from operating activities amounted to $1.04 billion compared with $1.11 billion a year ago.
Guidance
Ameren reiterated its 2024 guidance. It still expects to generate earnings per share (EPS) in the range of $4.52-$4.72. Currently, the Zacks Consensus Estimate for 2024 earnings is pegged at $4.61 per share, which is just below the midpoint of the company’s guided range.
Zacks Rank
Ameren currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2024 adjusted EPS of $1.25, which beat the Zacks Consensus Estimate of $1.23 by 1.6%. The bottom line also improved 10.6% from $1.13 recorded in the year-ago quarter.
Operating revenues of $4.73 billion rose 5.6% from the year-ago quarter’s level of $4.48 billion. American Electric reiterated its 2024 operating earnings guidance.
PG&E Corporation (PCG - Free Report) reported second-quarter 2024 adjusted EPS of 31 cents, which surpassed the Zacks Consensus Estimate of 30 cents by 3.3%. The bottom line also improved 34.8% from the year-ago quarter’s reported figure.
PCG reported second-quarter total revenues of $5.99 billion, up 13.2% from $5.29 billion registered in the year-ago period. Operating revenues also surpassed the Zacks Consensus Estimate of $5.83 billion by 2.7%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line also rose nearly 9.1% year over year.
Operating revenues amounted to $6.06 billion, which lagged the Zacks Consensus Estimate of $7.26 billion by 16.8%. The top line plunged 17.4% year over year.