Before the bell,
) reported second quarter 2013 earnings from continuing
operations of 44 cents per share, below the Zacks Consensus
Estimate of 49 cents. The quarterly result also plunged 33.3%
from the year-earlier earnings of 66 cents.
The lower number mainly reflects the result of a planned nuclear
refueling outage, impacts of a regulatory decision in 2012 and a
court decision in 2013, accompanied by a milder weather.
Total operating revenue in the reported quarter inched up 0.1% to
$1,403.0 million. However, revenue failed to meet the Zacks
Consensus Estimate of $1,502.0 million. Electric revenue
decreased 2.2% to $1,228.0 million while gas revenue increased
19%, on a year-over-year basis.
On Mar 2013, Ameren entered into an agreement to divest its
merchant generation business, Ameren Energy Resources Company or
AER, to an affiliate of
). AER consists primarily of Ameren Energy Generating Company or
Genco, including Genco's 80% ownership interest in Electric
Energy, Inc.; AmerenEnergy Resources Generating Company or AERG;
and Ameren Energy Marketing Company.
As a result of this transaction - which is scheduled to close
in the fourth quarter of this year - the company has classified
the results of this business as discontinued operations in its
Ameren Missouri Segment: Segmental earnings were $84 million,
down considerably from $143.0 million earned in the year-ago
quarter. The decrease mainly reflects lower electric sales
volumes as this year's early summer temperatures were cooler than
last year's warmer-than-normal temperatures.
The Callaway refueling outage expenses, the absence in 2013 of
a 2012 benefit resulting from the FERC purchased power agreement
order and the charge resulting from the May 2013 Missouri Court
of Appeals FAC decision also adversely affected the result.
Ameren Illinois Segment: Segmental earnings stood at $31.0
million in the quarter versus $32 million in the year-earlier
Ameren reported cash and cash equivalents of $150.0 million in
the second quarter 2013, compared with $184.0 million at 2012
end. Long-term debt decreased to $5,274.0 million from $5,802.0
million at year-end 2012.
The debt-to-capitalization ratio stood at 44.7% in the
reported quarter. The company generated cash of approximately
$768.0 million from operating activities in the first half of the
year compared with $761.0 million generated in the year-ago
AMEREN CORP (AEE): Free Stock Analysis Report
DYNEGY INC-NEW (DYN): Free Stock Analysis
HUANENG POWER (HNP): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
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Ameren now anticipates earnings from continuing operations in the
range of $2.00 to $2.15 per share for 2013 versus its previous
expectation of $2.00 to $2.20. This reduced expectation reflects
the second quarter 2013 charge resulting from the May 2013
Missouri Court of Appeals FAC decision.
Ameren presently retains a Zacks Rank #3 (Hold). Stocks worth
accumulating now are
Huaneng Power International, Inc.
Integrys Energy Group, Inc.
), both carrying a Zacks Rank #1 (Strong Buy).