Back to top

Image: Bigstock

Ameren (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 and full-year 2019 results on Feb 26, before the opening bell.

In the last reported quarter, this utility delivered a positive surprise of 0.68%.

Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 1.91%.

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

Factors to Consider

Ameren’s operational regions witnessed below-normal winter temperatures during most of the fourth quarter, along with heavy snowfall. Such extreme 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.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1,452 million, indicating a 2.3% increase from the year-ago quarter’s reported number.

Such revenue growth expectations make us optimistic about the company’s potential in delivering earnings growth in the fourth-quarter results. Moreover, Ameren has been, of late, earning strong performance incentives in Missouri. As a result, such energy-efficiency performance incentives are anticipated to have aided its bottom line in the December-end quarter.

Considering these factors, the Zacks Consensus Estimate for Ameren’s fourth-quarter earnings is pegged at 31 cents, suggesting a 10.7% rise from the year-ago quarter’s reported tally.

Ameren Corporation Price and EPS Surprise

Earnings Whispers

Our proven model predicts 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.

Earnings ESP: The company’s Earnings ESP is +4.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Other Stocks to Consider

Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat in the soon-to-be-reported quarter.

Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +1.21% and carries a Zacks Rank of 3, currently. The company will announce fourth-quarter 2019 earnings on Feb 26.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +6.56% and holds a Zacks Rank #3, at present. The company will report quarterly numbers on Feb 27.

The AES Corp (AES - Free Report) has an Earnings ESP of +3.82% and currently carries a Zacks Rank #3. The company will release fourth-quarter 2019 results on Feb 28.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Published in