Market Overview

Preview: Ameren's Earnings

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On Wednesday, November 04, Ameren (NYSE: AEE) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Ameren earnings will be near $1.48 per share on sales of $1.69 billion, according to analysts. In the same quarter last year, Ameren reported EPS of $1.47 on revenue of $1.66 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 0.68% increase in the company's earnings. Revenue would be up 1.87% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.87 0.71 0.31 1.45
EPS Actual 0.98 0.59 0.38 1.47
Revenue Estimate 1.44 B 1.61 B 1.64 B 1.77 B
Revenue Actual 1.40 B 1.44 B 1.32 B 1.66 B

Stock Performance

Over the last 52-week period, shares are up 11.71%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ameren is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: Earnings