Why Is Ameren (AEE) Up 3.6% Since the Last Earnings Report?

A month has gone by since the last earnings report for Ameren Corporation AEE. Shares have added about 3.6% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 catalysts.

Ameren Meets Q1 Earnings Estimates, Reaffirms '17 View

Ameren Corporation posted first-quarter 2017 earnings from continuing operations of $0.42 per share, in line with the Zacks Consensus Estimate. However, earnings declined 2.3% year over year.

The year-over-year decline in earnings was primarily due to lower 2017 electric retail sales at Ameren Missouri, thanks to very mild winter temperatures as well as lower tax benefits associated with share-based compensation.

Total Revenue

Total revenue of $1,514 million in the first quarter of 2017 was up 5.6% year over year on the back of higher electric sales volumes.

Highlights of the Release

Ameren's total electricity sales in the reported quarter grew 2.6% to 19,174 million kilowatt hours (kWh) from 18,690 million kWh in the prior-year quarter. Gas volumes were down 7.2% to 64 million dekatherms from 69 million dekatherms in the prior-year quarter.

Total operating expenses in the first quarter were $1,260 million, up 3.8% year over year.

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

Financial Condition

Ameren reported cash and cash equivalents of $8 million as of Mar 31, 2017 compared with $9 million at 2016 end.

Long-term debt as of Mar 31, 2017 was $6,597 million compared with $6,595 million as of Dec 31, 2016.

Cash from operating activities in the first quarter was $331 million compared with $349 million in the prior-year period.

Guidance

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

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

Ameren Corporation Price and Consensus

 

VGM Scores

At this time, the stock has an average Growth Score of 'C', however its momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.

Outlook

The stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ameren Corporation AEE: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research