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Ameren (AEE) Tops Q2 Earnings Estimates, Keeps '17 Outlook

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Ameren Corporation (AEE - Free Report) posted second-quarter 2017 earnings from continuing operations of 79 cents per share, beating the Zacks Consensus Estimate of 69 cents by 14.5%. The bottom line also improved 29.5% year over year.

The year-over-year bottom-line improvement was primarily driven by new Ameren Missouri electric service rates effective Apr 1, 2017, absence of a nuclear refueling and maintenance outage at the Callaway Energy Center, and a change in the timing of interim period revenue recognition at the Ameren Illinois Electric Distribution segment.

Total Revenue

Total revenue of $1,538 million in the reported quarter was up 7.8% year over year on the back of higher electric sales volumes.

Highlights of the Release

Ameren’s total electricity sales in the quarter grew 9.2% to 19,125 million kilowatt hours (kWh) from 17,508 million kWh in the prior-year quarter. Gas volumes were down 3% to 32 million dekatherms from 33 million dekatherms in the prior-year quarter.

Total operating expenses were $1,140 million, up 3.4% year over year.

Interest expenses were $99 million, up 4.2% from the year-ago figure.

Ameren Corporation Price, Consensus and EPS Surprise

Ameren Corporation Price, Consensus and EPS Surprise | Ameren Corporation Quote

Financial Condition

Ameren reported cash and cash equivalents of $10 million as of Jun 30 compared with $9 million at 2016 end.

Long-term debt as of Jun 30 was $6,597 million compared with $6,821 million as of Dec 31, 2016.

Cash from operating activities in the first six months of the year was $863 million compared with $763 million in the prior-year period.

Guidance

Ameren reiterates 2017 diluted earnings per share to be in a range of $2.65−$2.85.

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.

Peer Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up by 11.4% year over year.

WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8%, and the year-ago figure of 57 cents by 10.5%.

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