Ameren Corporation AEE posted second-quarter 2015 earnings from continuing operations of 58 cents per share, missing the Zacks Consensus Estimate of 63 cents by 7.9%. Earnings also dropped 6.4% from the year-ago figure.
The year-over-year decline in earnings was due to lower retail electric sales volume on milder early summer temperatures.
GAAP earnings in the reported quarter were 61 cents, in line with the year-ago period. The difference between operating and GAAP earnings in the reported quarter was due to an 18 cent loss and a gain of 21 cents from discontinued operations.
Total Revenues
Total revenues of $1,401 million for the second quarter lagged the Zacks Consensus Estimate of $1,431 million by 2.1%. Ameren’s total operating revenues also dipped 1.3% year over year due to a decline in natural gas revenues.
Highlights of the Release
Ameren’s total electricity sales in the reported quarter increased nearly 1% to 18,954 million kilowatt hours from 18,772 million kilowatt hours in the prior-year quarter. Gas volumes decreased 3.2% to 30,145 thousand dekatherms from 31,134 thousand dekatherms in the prior-year quarter.
Total operating expenses in the second quarter were $1,164 million, up 6.1% year over year.
Interest expenses were $89 million, flat year over year.
Segmental Performance
Ameren Missouri: Segmental earnings were $104 million in the second quarter compared with $126 million in the year-ago period. Quarterly results declined due to lower electric sales volume on account of milder summer temperatures.
Ameren Illinois: Segmental earnings stood at $31 million, compared with $26 million in the year-ago quarter. Quarterly results improved due to higher investments in electric delivery and transmission infrastructure made under formula ratemaking and reduced other operations and maintenance expenses related to natural gas delivery.
Parent Company and Other: The segment turned around with earnings of $6 million as against a loss of $4 million in the year-ago period.
Financial Condition
Ameren reported cash and cash equivalents of $2 million as of Jun 30, 2015, compared with $5 million at 2014 end.
Long-term debt as of Jun 30, 2015 was $5,981 million compared with $6,120 million as of Dec 31, 2014.
Cash generated from operating activities in the first half of 2015 was $767 million compared with $654 million in the prior-year period.
Capital expenditure in the first sixth months of 2015 was $846 million, down from $883 million in the comparable year-ago period.
Guidance
Ameren reiterated its 2015 earnings guidance in the range of $2.45 to $2.65 per share and GAAP earnings in the range of $2.48 to $2.68 per share.
At the Peers
PG&E Corporation’s PCG adjusted operating earnings per share of 91 cents in the second quarter of 2015 outpaced the Zacks Consensus Estimate of 77 cents by 18.2%
American Electric Power Co., Inc. AEP reported second-quarter 2015 operating earnings of 88 cents per share, beating the Zacks Consensus Estimate of 81 cents by 8.6%.
DTE Energy Company DTE reported second-quarter 2015 operating earnings per share of 76 cents, lagging the Zacks Consensus Estimate of 84 cents by 9.5%
Zacks Rank
Ameren presently holds a Zacks Rank #3 (Hold).
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