Ameren Corporation (AEE), headquartered in Saint Louis, Missouri, generates and delivers electricity, and distributes natural gas to its customers. Valued at $23.8 billion by market cap, the company generates a net capacity of nearly 10,200 megawatts of electricity and owns more than 7,500 circuit miles of transmission lines. The public utility holding company is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Nov. 6.
Ahead of the event, analysts expect AEE to report a profit of $1.99 per share on a diluted basis, up 6.4% from $1.87 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect AEE to report EPS of $4.62, up 5.5% from $4.38 in fiscal 2023. Its EPS is expected to rise 6.3% year over year to $4.91 in fiscal 2025.
AEE stock has outperformed the S&P 500’s ($SPX) 21.5% gains on a YTD basis, with shares up 23.3% during this period. However, it underperformed the Utilities Select Sector SPDR Fund’s (XLU) 29.7% gains over the same time frame.
AEE has outperformed due to various factors such as new electric rates, customer additions, cost management, and energy-efficiency programs. Investments to improve electric infrastructure and transition to renewable energy sources have also contributed. The Federal Reserve's rate-cut is expected to benefit capital-intensive utilities by lowering capital servicing costs and boosting margins and profitability.
On Aug. 1, AEE shares closed up more than 2% after reporting its Q2 results. Its EPS of $0.97 topped Wall Street expectations of $0.93. The company’s revenue was $1.7 billion, falling short of Wall Street forecasts of $1.9 billion. AEE reaffirmed its 2024 EPS and expects it to be between $4.52 and $4.72.
Analysts’ consensus opinion on AEE stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, nine advise a “Strong Buy” rating, six give a “Hold” rating, and one recommends a “Strong Sell.” While AEE currently trades above its mean price target of $88.36, the Street-high price target of $98 suggests an upside potential of 9.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
