Boston, MA 05/12/2014 (wallstreetpr) – Ameren Corp (NYSE:AEE) has protracted net income from the continuing operations, estimating to $97 million (40 CPS) at the end of Q12014, in contrast to the income notched up at the end of Q12013, amounting to $54 million (22 CPS).
Ameren Missouri segment witnessed Q12014 earnings amounting to $47 million, compared to Q12013 earnings that estimated to $40 million. Ameren Illinois depicted a whopping increase in earnings – $53 million in Q12014 in contrast to $31 million in Q12013.
The Unusually Cold Winters benefited AEE!
The primary reason soliciting such profits amassed by Ameren Corp (NYSE:AEE) at the end of Q12014 is that the colder winters in Illinois and Missouri enhanced the influx of revenues, snapping a lower interest expense upon electric transmission service. Natural Gas and Electricity sales volumes were boosted significantly, owing to the colder temperatures. Moreover, there had been substantial elimination of administrative and business costs, incurred previously to support divested merchant generation.
The CEO Speaks!
Mr. Warner L. Baxter, the President and CEO of Ameren Corp (NYSE:AEE) corroborated because higher earnings and a stronger Q12014 being the unusually cold winters. However, he also hailed the disciplined cost management of the AEE Team, in this regard. Mr. Baxter tried to woo the investors further stating that AEE shall operate the Utilities in a consistent manner, with the current regulatory frameworks and hence it’s deemed to excel in terms of procuring higher incident revenues during the remaining quarters of 2014.
Earnings Guidance – FY 2014!
Ameren Corp (NYSE:AEE) projected about expected 2014 earnings per share, between $2.30 to $2.50, depicting a meek increase from the prior range per share between $2.25 to $2.45. Further, AEE expects the earnings to soar at a robust 7% to 10% compounded annual rate. The growth is anticipated based on the infrastructure investments in electric transmission services regulated by FERC and in Illinois-regulated energy delivery.
AEE projected the earnings, assuming that the temperatures and the weather in the service areas shall remain normal during the remaining quarters of 2014. Besides, the company has announced their plans for doling out quarterly dividend; the annual dividend amounts to $1.60 per share.
Stocks Sliding, But Why?
There is a pressing need on Illinois’ leadership in the realm of clean energy! In this regard, the views are floating around that AEE might have to dedicate a larger fraction of their revenues for purchasing green energy.
Now, the apparent question is, will the need for clean power and dreading environmental calamities affect Ameren Corp (NYSE:AEE)’s stocks? It is most likely that investors are having such a perception!
