Ameren Corporation Anticipates Strong Q1 2025 Earnings Growth
With a market capitalization of $26 billion, Ameren Corporation (AEE) operates as a public utility holding company, providing electric and natural gas services in Missouri and Illinois. The company has four primary segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. Ameren generates electricity from a diversified mix of coal, nuclear, gas, and renewable sources, serving diverse customer bases, including residential, commercial, and industrial sectors.
Upcoming Q1 2025 Earnings Report
AEE is scheduled to release its fiscal Q1 2025 earnings results after the market closes on Thursday, May 1. Analysts project that the utility will report a profit of $1.04 per share, representing a 6.1% increase from $0.98 per share in the same quarter last year. However, AEE has only surpassed Wall Street’s earnings expectations in one of the last four quarters, with three misses. In Q4 2024, AEE did not meet the consensus EPS estimate by 2.5%.
Fiscal 2025 and Future Projections
For fiscal 2025, analysts forecast that the Saint Louis-based Ameren will report an EPS of $4.93, up 6.5% from $4.63 reported in fiscal 2024. Moreover, EPS is expected to grow by 7.7% year-over-year, reaching $5.31 in fiscal 2026.
Stock Performance Analysis
Shares of AEE have increased by 30.6% over the past 52 weeks, significantly outperforming both the S&P 500 Index ($SPX), which gained 3.8%, and the Utilities Select Sector SPDR Fund’s (XLU) 16.1% increase during the same timeframe.
Recent Quarterly Performance and Analyst Outlook
Despite Ameren’s Q4 2024 revenue beating expectations at $1.9 billion on February 13, its shares fell slightly the following day. The company reported an EPS of $0.77, which fell short of analyst expectations, even though it marked a 28.3% increase from the previous year. Investors remained cautious due to the rise in operating expenses and higher interest costs. Notably, earnings from the Ameren Illinois Electric Distribution segment dipped to $234 million in 2024, impacted by a lower allowed return on equity as outlined in the new multi-year rate plan.
Analysts maintain a cautiously optimistic stance on Ameren’s stock, providing an overall rating of “Moderate Buy.” Among 16 analysts covering the stock, nine recommend a “Strong Buy,” six suggest a “Hold,” and one rates it as a “Strong Sell.” Currently, AEE is trading below the average analyst price target of $102.28.
On the date of publication, Sohini Mondal 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.
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