Ameren (AEE) To Report Q1 Earnings: Is A Beat In The Cards?
Zacks Investment Research | May 05, 2019 11:54PM ET
Factors Under Consideration
Ameren’s service territories witnessed below-normal and below-average temperatures during most of the first quarter of 2019, characterized by excessive cold winters along with heavy and prolonged snowstorms. The freezing conditions witnessed in one of the company's service territory, Illinois, was led by the emergence of the Arctic blast that occurred in late January. This resulted in increased demand for electricity by the utility’s customers on account of enhanced heating facility usages. This must have boosted the company’s top line in the to-be-reported quarter.
Ameren continues to implement its strategy of investing in rate-regulated energy infrastructure for improving its overall operating performance. The execution of such a strategy led to a solid earnings growth for the company in 2018. Moreover, over the last five years, Ameren's planned investments have led to compound annual earnings per share growth of more than 7%. As the company expects to deliver strong earnings growth in 2019 as well, we expect this trend to continue and favorably impact the bottom line in the upcoming quarterly results.
Considering this, the Zacks Consensus Estimate for Ameren’s earnings is pegged at 70 cents, suggesting a 12.9% rise from the year-ago quarter’s reported figure.
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