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A month has gone by since the last earnings report for Ameren (AEE). Shares have added about 6.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ameren due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Ameren Q3 Earnings Miss Estimates, Revenues Increase Y/Y
Ameren Corporation reported third-quarter 2024 adjusted earnings of $1.87 per share, which missed the Zacks Consensus Estimate of $1.91 by 2.1%.
The company posted GAAP earnings of $1.70 per share compared with $1.87 per share in the third quarter of 2023.
AEE’s Total Revenues
Total revenues came in at $2.17 billion in the reported quarter, up 5.5% year over year. However, revenues missed the Zacks Consensus Estimate of $2.21 billion by 1.6%.
Highlights of the Release
Ameren’s total electricity sales volumes decreased 2.8% to 18,565 million kilowatt-hours (kWh) compared with 19,098 million kWh in the year-ago period. Gas volumes rose 7.4% to 29 million dekatherms from the prior-year period’s level.
Total operating expenses were $1.59 billion, up 9.8% year over year.
The company’s interest expenses in the third quarter totaled $173 million compared with the prior-year quarter’s $152 million.
AEE’s Segmental Results
The Ameren Missouri segment reported adjusted earnings of $415 million. This unit reported GAAP earnings of $381 million.
The Ameren Illinois Electric Distribution segment reported earnings of $56 million in the third 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 a loss of $10 million in the third quarter compared with a loss of $5 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 adjusted earnings of $90 million. It reported GAAP earnings of $100 million compared with $86 million in the prior-year period. The improvement was driven by increased earnings from infrastructure investments.
AEE’s Financial Condition
Ameren reported cash and cash equivalents of $17 million as of Sept. 30, 2024 compared with $25 million at the end of 2023.
As of Sept. 30, 2024, the long-term debt totaled $16.42 billion compared with $15.12 billion as of Dec. 31, 2023.