Ameren Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ameren (NYSE:AEE) will unveil its latest earnings on Friday, November 9, 2012. Through its subsidiaries, Ameren operates rate-regulated electric generation, transmission, and distribution businesses; rate-regulated natural gas transmission and distribution businesses; and non-rate-regulated electric generation businesses.

Ameren Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.42 per share, a decline of 9.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.37. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 3.5% versus last year to $2.47.

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A Look Back: In the second quarter, profit rose 52.9% to $211 million (87 cents a share) from $138 million (57 cents a share) the year earlier. Revenue fell 6.8% to $1.66 billion from $1.78 billion.

Stock Price Performance: Between August 10, 2012 and November 5, 2012, the stock price fell $2.45 (-7.1%), from $34.70 to $32.25. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 1, 2012, when shares rose for seven straight days, increasing 5% (+$1.57) over that span. It saw one of its worst periods between March 30, 2012 and April 10, 2012 when shares fell for seven straight days, dropping 3.7% (-$1.19) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.14 billion in revenue this quarter, a decline of 5.7% from the year-ago quarter. Analysts are forecasting total revenue of $7.4 billion for the year, a decline of 1.7% from last year’s revenue of $7.53 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 10.5% in the fourth quarter of the last fiscal year and 12.9% in first quarter before falling again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 10 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.34 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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