Ameren Corporation’s Performance: Insights into Recent Earnings and Future Outlook

Overview of Ameren Corporation

Ameren Corporation (AEE), headquartered in Saint Louis, Missouri, is a public utility holding company that supplies electricity and natural gas to various markets, including residential, commercial, industrial, and wholesale sectors. The company has a market capitalization of $25.9 billion and generates power from a mix of sources including coal, nuclear, natural gas, and renewables like hydroelectric, wind, methane gas, and solar energy.

Strong Stock Performance Against Broader Market

Over the past 52 weeks, Ameren’s stock performance has significantly surpassed that of the broader market. Specifically, AEE shares have risen by 41.5%, compared to a 20.7% gain for the S&P 500 Index ($SPX). On a year-to-date basis, the stock is up 9%, outpacing SPX’s 3.1% increase in 2025.

When examined against the Utilities Select Sector SPDR Fund (XLU), which returned 31.1% over the same period and 4.4% year-to-date, AEE’s strong momentum becomes even clearer.

Q3 Earnings Report Disappoints Investors

On November 6, Ameren’s shares dipped by 1.4% following a Q3 earnings report that fell short of expectations. Although revenue climbed 5.3% year-over-year to $2.2 billion, it was 1.8% below analysts’ forecasts. Adjusted earnings per share (EPS) remained flat at $1.87 compared to the previous year and missed the anticipated $1.91. This downturn stemmed from a 2.8% drop in electricity sales volume and a notable 9.8% rise in operating expenses.

Revised Earnings Guidance Raises Concerns

Adding to the unease, Ameren reduced its full-year 2024 GAAP earnings guidance to a range of $4.34 to $4.48, with expectations of increased interest expenses in 2025. The company did uphold its non-GAAP fiscal 2024 EPS guidance in the range of $4.55 to $4.69.

Looking ahead to FY2024, which concludes in December 2024, analysts forecast a 5.7% increase in AEE’s EPS to $4.63. Despite this, the company’s earnings surprise history has been lackluster, with only one outperformance against Wall Street estimates out of the last four quarters.

Analysts’ Ratings and Future Price Targets

The outlook from 16 analysts covering Ameren is largely positive, with a consensus rating of “Moderate Buy.” This rating includes nine “Strong Buy,” six “Hold,” and one “Strong Sell.”

On January 30, BMO Capital Markets reaffirmed an “Outperform” rating for Ameren, raising its price target to $100, indicating a potential upside of 2.9% from current trading levels.

Currently, the company trades 2.7% above its average price target of $94.64. The highest target on the Street of $104 implies an upside potential of 7%.

On the publication date, Neharika Jain did not hold positions in any of the mentioned securities. This article’s information is for informational purposes only. For more details, view the Barchart Disclosure Policy.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.