Ameren Corporation AEE posted third-quarter 2015 earnings from continuing operations of $1.41 per share, beating the Zacks Consensus Estimate of $1.31 by 7.6%. Earnings also increased 17.5% from the year-ago figure.
The year-over-year improvement in earnings was due to higher retail electric sales volume on warmer summer temperatures. Also, more investments in electric transmission and delivery infrastructure made under formula ratemaking led to the increase.
Total Revenues
Total revenues of $1,833 million for the third quarter of 2015 increased 9.8% year over year on the back of higher electric revenues.
Highlights of the Release
Ameren’s total electricity sales in the reported quarter increased 1.5% to 21,324 million kilowatt hours from 21,013 million kilowatt hours in the prior-year quarter. Gas volumes increased 3.5% to 27,005 thousand dekatherms from 26,080 thousand dekatherms in the prior-year quarter.
Total operating expenses in the third quarter were $1,207 million, up 8.8% year over year.
Interest expenses were $87 million, higher than $85 million a year ago.
Segmental Performance
Ameren Missouri: Segmental earnings were $239 million in the third quarter compared with $222 million in the year-ago period. Quarterly results improved due to higher electric sales volume on account of warmer summer temperatures.
Ameren Illinois: Segmental earnings were $98 million, compared with $75 million in the year-ago quarter. Quarterly results improved due to higher investments in electric delivery and transmission infrastructure made under formula ratemaking.
Parent Company and Other: The segment turned around with earnings of $6 million as against a loss of $3 million in the year-ago period.
Financial Condition
Ameren reported cash and cash equivalents of $72 million as of Sep 30, 2015, compared with $5 million at 2014 end.
Long-term debt as of Sep 30, 2015 was $5,981 million compared with $6,120 million as of Dec 31, 2014.
Cash from operating activities in the first nine months of 2015 was $1,528 million compared with $1,203 million in the prior-year period.
Capital expenditure in the first nine months of 2015 was $1,332 million, up from $1,310 million in the comparable year-ago period.
Guidance
Ameren narrowed its 2015 operating earnings guidance to the range of $2.55−$2.65 from $2.45−$2.65 earlier while the GAAP earnings guidance was narrowed to the range of $2.58−$2.68 from $2.48−$2.68 earlier.
At the Peers
Jackson, MI-based CMS Energy Corporation CMS reported third-quarter 2015 adjusted earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents by 8.2%. Quarterly earnings surged 55.9% from the year-ago figure primarily on the back of higher revenues and operating income.
American Electric Power Co., Inc. AEP reported third-quarter 2015 operating earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.00 by 6%.
Sempra Energy’s SRE third-quarter 2015 adjusted earnings per share came in at $1.00, ahead of the Zacks Consensus Estimate of 83 cents by 20.5%. Earnings, however, declined 28.6% from $1.39 per share in the prior-year quarter, primarily due to seasonally lower earnings at the company’s subsidiary, Southern California Gas Co.
Zacks Rank
Ameren presently carries a Zacks Rank #2 (Buy).
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