Ameren (NYSE:AEE) is gearing up to announce its quarterly earnings on Wednesday, 2024-11-06. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Ameren will report an earnings per share (EPS) of $1.91.
Ameren bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
During the last quarter, the company reported an EPS beat by $0.03, leading to a 1.56% increase in the share price on the subsequent day.
Here's a look at Ameren's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.94 | 1.06 | 0.61 | 1.83 |
| EPS Actual | 0.97 | 0.98 | 0.60 | 1.87 |
| Price Change % | 2.0% | -2.0% | 1.0% | -2.0% |
Ameren Share Price Analysis
Shares of Ameren were trading at $86.02 as of November 04. Over the last 52-week period, shares are up 11.85%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on Ameren
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Ameren.
The consensus rating for Ameren is Neutral, based on 7 analyst ratings. With an average one-year price target of $89.0, there's a potential 3.46% upside.
Peer Ratings Overview
The below comparison of the analyst ratings and average 1-year price targets of DTE Energy, CMS Energy and CenterPoint Energy, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
The consensus among analysts is an Outperform trajectory for DTE Energy, with an average 1-year price target of $134.73, indicating a potential 56.63% upside. The consensus outlook from analysts is an Outperform trajectory for CMS Energy, with an average 1-year price target of $72.43, indicating a potential 15.8% downside. The prevailing sentiment among analysts is an Neutral trajectory for CenterPoint Energy, with an average 1-year price target of $29.62, implying a potential 65.57% downside. Overview of Peer Analysis
The peer analysis summary provides a snapshot of key metrics for DTE Energy, CMS Energy and CenterPoint Energy, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Ameren | Neutral | -3.81% | $868M | 2.25% |
| DTE Energy | Outperform | 0.62% | $1.07B | 4.19% |
| CMS Energy | Outperform | 4.18% | $739M | 3.20% |
| CenterPoint Energy | Neutral | -0.22% | $883M | 1.85% |
Key Takeaway:
Ameren ranks at the bottom for Revenue Growth and Gross Profit, with negative growth and the lowest profit among peers. It is also at the bottom for Return on Equity, indicating lower profitability compared to others. Overall, Ameren's performance is below average compared to its peers in the analysis.
All You Need to Know About Ameren
Ameren owns rate-regulated generation, transmission, and distribution networks that deliver electricity and natural gas in Missouri and Illinois. It serves more than 2.4 million electricity customers and more than 900,000 natural gas customers.
Ameren's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Ameren's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -3.81%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.
Net Margin: Ameren's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 15.24%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Ameren's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.25% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.62%, the company showcases effective utilization of assets.
Debt Management: Ameren's debt-to-equity ratio is below the industry average. With a ratio of 1.54, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Ameren visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
