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Core Insights - Current market conditions reflect a balance between optimism due to strong earnings and potential rate cuts, and caution stemming from high tech stock valuations and uncertainty regarding Federal Reserve actions [1] - Recent market pullbacks are viewed as a normal reset rather than a significant reversal, making stock selection challenging for retail investors [1] Stock Selection Strategy - A traditional stock-picking approach focusing on sales growth is recommended, as it provides a more reliable evaluation compared to earnings metrics [2][3] - Companies with impressive sales growth and strong cash flow are prioritized, with specific screening parameters including a 5-Year Historical Sales Growth greater than industry average and cash flow exceeding $500 million [6] Key Metrics for Evaluation - Price-to-Sales (P/S) Ratio should be less than the industry average, indicating better value for each dollar of revenue [7] - Positive revisions in sales estimates compared to the industry can lead to stock price increases [7] - Operating Margin should average over 5% over the last five years, reflecting effective cost control and sales growth [8] - Return on Equity (ROE) should exceed 5%, ensuring that sales growth translates into profits [9] - Zacks Rank of 1 or 2 indicates stocks likely to outperform the market [9] Highlighted Stocks - Vertiv Holdings Co (VRT) is projected to have a sales growth rate of 27.5% for 2025 and currently holds a Zacks Rank 1 [10][12] - Universal Health Services Inc. (UHS) expects a sales growth rate of 9.7% for 2025 and also holds a Zacks Rank 1 [10][13] - Aptiv PLC (APTV) anticipates a sales increase of 2.9% in 2025, with a Zacks Rank 2 [10][14] - Ameren Corporation (AEE) has a projected sales growth of 16.2% for 2025 and carries a Zacks Rank 2 [10][15] - FirstCash Holdings, Inc. (FCFS) expects a sales growth of 5.3% in 2025 and also holds a Zacks Rank 2 [10][16]

Core Insights - Ameren Corporation (AEE) reported third-quarter 2025 earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $2.10 by 3.3% and showing a 16% increase from $1.87 per share in the same quarter last year [1][7] - Total revenues for the quarter reached $2.70 billion, marking a 24.2% year-over-year increase and surpassing the Zacks Consensus Estimate of $2.41 billion by 12% [2][7] Revenue and Sales Performance - Total electricity sales volumes increased by 2.4% to 19,009 million kilowatt-hours (kWh) compared to 18,565 million kWh in the prior year [3] - Gas volumes decreased by 3.4% to 28 million dekatherms from the previous year's level [3] Operating Expenses and Financials - Total operating expenses rose to $1.87 billion, an 18.1% increase year over year [3] - Interest expenses for the third quarter totaled $208 million, up from $173 million in the same quarter last year [3] - Cash flow from operating activities amounted to $2.40 billion, compared to $1.95 billion a year ago [6] Segment Performance - The Ameren Missouri segment reported earnings of $518 million, up from $415 million a year ago, driven by new electric service rates and increased infrastructure investments [4] - The Ameren Illinois Electric Distribution segment reported earnings of $57 million, slightly up from $56 million in the previous year [4] - The Ameren Illinois Natural Gas segment posted a loss of $13 million, compared to a loss of $10 million in the prior year [5] - The Ameren Transmission segment reported earnings of $103 million, up from $100 million a year ago [5] Guidance and Outlook - Ameren raised its 2025 EPS outlook to a range of $4.90-$5.10, higher than the previous guidance of $4.85-$5.05 [7][8] - The Zacks Consensus Estimate for 2025 earnings is pegged at $4.98 per share, which is below the midpoint of the company's guided range [8] Zacks Rank - Ameren currently holds a Zacks Rank 2 (Buy) [9]

Financial Performance - Net income attributable to Ameren common shareholders for Q3 2025 was $640 million, or $2.35 per diluted share, compared to $456 million, or $1.70 per diluted share in Q3 2024, representing a 40.3% increase in net income and a 38.2% increase in earnings per share [203]. - For the nine months ended September 30, 2025, net income attributable to Ameren common shareholders was $1,204 million, or $4.43 per diluted share, compared to $975 million, or $3.65 per diluted share in the same period of 2024, reflecting a 23.4% increase in net income and a 21.4% increase in earnings per share [223]. - Net income increases for Q3 2025 were primarily driven by Ameren Missouri ($137 million), Ameren Transmission ($61 million), and Ameren Illinois Electric Distribution ($1 million), partially offset by losses in Ameren Illinois Natural Gas ($3 million) [222]. - The total net income for the nine months ended September 30, 2025, was $522 million, an increase from $454 million in the same period of 2024 [229]. - Operating income for Ameren for the nine months ended September 30, 2025, was $1,666 million, compared to $1,318 million for the same period in 2024, indicating an increase of approximately 26.4% [227]. Revenue Growth - Electric revenues for Ameren reached $1,685 million in Q3 2025, compared to $1,324 million in Q3 2024, reflecting a year-over-year increase of approximately 27.3% [226]. - The total electric revenues for the nine months ended September 30, 2025, were $6,223 million, compared to $4,920 million for the same period in 2024, marking an increase of approximately 26.4% [227]. - Ameren's electric revenues increased by $528 million, or 26%, for the three months ended September 30, 2025, and by $1,303 million, or 26%, for the nine months ended September 30, 2025, compared to the previous year [234]. - Ameren Missouri's electric revenues rose by $361 million, or 27%, for the three months and by $991 million, or 34%, for the nine months ended September 30, 2025, compared to the year-ago periods [236]. - Ameren Illinois' electric revenues increased by $157 million, or 23%, for the three months and by $304 million, or 16%, for the nine months ended September 30, 2025, compared to the previous year [238]. Capital Investments - Ameren invested $3.1 billion in its rate-regulated businesses in the nine months ended September 30, 2025, focusing on energy infrastructure and regulatory frameworks [204]. - Ameren Missouri's Smart Energy Plan includes a five-year capital investment of approximately $16.2 billion from 2025 to 2029, aimed at upgrading electric infrastructure and accommodating renewable energy [211]. - Ameren Missouri plans to invest up to $27.4 billion in capital expenditures from 2025 to 2029, with up to $17.5 billion allocated to Ameren Missouri [353]. Regulatory Approvals - An increase of $355 million to Ameren Missouri's annual revenue requirement for electric retail service was approved, effective June 1, 2025, based on infrastructure investments as of December 31, 2024 [207]. - In July 2025, an increase of $32 million to Ameren Missouri's annual revenue requirement for natural gas delivery service was approved, effective September 1, 2025 [210]. - The ICC approved Ameren Illinois' energy-efficiency plan, which includes annual investments of approximately $126 million per year from 2026 through 2029 [217]. Operating Expenses - Ameren's electric fuel and purchased power expenses increased by $269 million, or 54%, and $910 million, or 79%, for the three and nine months ended September 30, 2025, respectively [249]. - Other operations and maintenance expenses decreased by $18 million and $8 million in the three and nine months ended September 30, 2025, respectively [262]. - Interest charges for Ameren increased by $35 million and $78 million in the three and nine months ended September 30, 2025, respectively, due to higher levels of short-term borrowings and long-term debt issuances [295]. Cash Flow and Liquidity - Ameren's cash provided by operating activities increased by $451 million in the first nine months of 2025 compared to the same period in 2024, totaling $2.397 billion [307]. - As of September 30, 2025, Ameren's net available liquidity was $1.647 billion, including $9 million in cash and cash equivalents [324]. - Ameren expects cash used for capital expenditures and dividends to exceed cash provided by operating activities over the next several years [355]. Future Outlook and Strategic Initiatives - The company aims for a net-zero carbon emissions target by 2045, with a 60% reduction by 2030 and an 85% reduction by 2040 based on 2005 levels [351]. - Ameren plans to add 3,200 MWs of renewable generation by 2030, including 650 MWs of solar generation projects [352]. - The execution of strategic initiatives, including acquisitions and cost reductions, may materially impact Ameren's future results and financial position [357].

Financial Data and Key Metrics Changes - The company reported third quarter 2025 adjusted earnings of $2.17 per share, an increase from $1.87 per share in the third quarter of 2024, reflecting a growth of approximately 16% [5][25]. - The GAAP earnings for the same period were $2.35 per share, which included a tax benefit of $0.18 per share due to IRS guidance and a FERC order [25][6]. - The company expects adjusted diluted earnings per share for 2025 to be in the range of $4.90-$5.10, up from the original guidance of $4.85-$5.05 [10][27]. Business Line Data and Key Metrics Changes - The company deployed over $3 billion in critical infrastructure upgrades during the first three quarters of 2025, including significant investments in electric distribution and transmission systems [7][8]. - In Missouri, 11,300 electric distribution poles were replaced, and in Illinois, over 8,500 stronger electric distribution poles were installed [7][8]. - The company has invested more than $825 million in new or existing generation resources, with plans to add approximately 10 gigawatts of generation capacity by 2035 [8][9]. Market Data and Key Metrics Changes - Total normalized retail sales in Ameren Missouri increased by approximately 1.5% across all customer classes over the trailing 12 months through September [26]. - The company is actively engaging with potential data center customers, with signed construction agreements now totaling 3 gigawatts, up from 2.3 gigawatts [12][56]. - The anticipated new load from data center customers is expected to contribute significantly to sales growth, with projections of 1 gigawatt by 2029 and 1.5 gigawatts by 2032 [12][13]. Company Strategy and Development Direction - The company is focused on investing in electric and natural gas infrastructure to enhance reliability and safety, while also optimizing operations to keep customer rates affordable [4][5]. - The strategy includes engaging with stakeholders on economic development opportunities and advancing regulatory frameworks to support large-load customers [5][11]. - The company aims to maintain a balanced energy mix, targeting approximately 70% generation from on-demand resources and 30% from intermittent resources by 2040 [16]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic growth potential of the regions served, highlighting significant opportunities for investment and job creation [4][5]. - The company expects to continue delivering strong earnings growth, projecting a compound annual growth rate of 6-8% from 2025 through 2029 [10][22]. - Management emphasized the importance of regulatory approvals and energy service agreements to solidify future growth expectations [46][78]. Other Important Information - The company has a pipeline of investment opportunities exceeding $68 billion, with further details expected in February regarding planned capital investments for 2026-2030 [21][22]. - Leadership changes were announced, with Michael Moehn transitioning to Group President of Ameren's Utilities and Lenny Singh becoming the new CFO [23][24]. Q&A Session Summary Question: Will the increase in data center construction agreements necessitate revisions to generation plans? - Management indicated that the current generation plans can accommodate the increased sales expectations from the expanded data center agreements, with further evaluations to be made as ramp rates are established [34][36]. Question: What factors contribute to the company's current earnings guidance? - Management noted that the guidance reflects a conservative approach based on known factors, with potential for upside as regulatory approvals and energy service agreements are finalized [45][77]. Question: How does the recent omnibus energy bill in Illinois impact the business? - Management highlighted that the bill introduces integrated resource planning and increased investment in energy efficiency, which could provide opportunities for the company [60][62]. Question: Can you clarify the $5 billion increase in the capital plan pipeline? - Management explained that the increase is due to various factors, including investments in generation and grid reliability, with more details to be provided in February [87][88].

Financial Data and Key Metrics Changes - The company reported third quarter 2025 adjusted earnings of $2.17 per share, an increase from $1.87 per share in the third quarter of 2024, reflecting a $0.30 increase in adjusted earnings per share [5][25][26] - The GAAP earnings for the third quarter 2025 were $2.35 per share, which included a tax benefit of $0.18 per share due to IRS guidance [25][26] - The company expects adjusted diluted earnings per share for 2025 to be in the range of $4.90-$5.10, up from the original guidance of $4.85-$5.05 [10][27] Business Line Data and Key Metrics Changes - Ameren invested over $3 billion in critical infrastructure upgrades during the first three quarters of 2025, including the replacement of 11,300 electric distribution poles and installation of 300 smart switches [7][8] - The company has invested more than $825 million in new or existing generation resources through September 2025, with plans to add approximately 10 GW of generation capacity by 2035 [8][9] Market Data and Key Metrics Changes - Total normalized Ameren Missouri retail sales increased by approximately 1.5% across all customer classes over the trailing 12 months through September [26] - The executed construction agreements with data center developers in Missouri expanded to 3 GW, up from 2.3 GW, indicating strong demand in the region [12][58] Company Strategy and Development Direction - The company is focused on investing in electric and natural gas infrastructure to enhance reliability and safety, while also optimizing operations to keep customer rates affordable [4][5] - Ameren's long-term earnings growth guidance is set at a 6%-8% compound annual growth rate from 2025 through 2029, driven by strategic infrastructure investments [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic growth of the regions served, highlighting opportunities for investment and job creation [4][5] - The company anticipates significant growth in data center demand, with expectations of 1 GW of new load from data center customers by the end of 2029 [12][14] Other Important Information - A leadership transition is set for January 1, with Michael Moehn becoming Group President of Ameren's Utilities and Lenny Singh taking over as CFO [23][24] - The company plans to provide updates on its five-year sales growth expectations and capital investments in February 2026 [12][22] Q&A Session Summary Question: Will the increase in data center construction agreements necessitate revisions to generation plans? - Management confirmed that the increase to 3 GW of construction agreements enhances confidence in sales projections and current generation plans can accommodate this growth [34][36] Question: What factors contribute to the current earnings guidance being at the lower end of the growth range? - Management indicated that while they are currently projecting growth within the 6%-8% range, they are open to revising this based on economic development opportunities and regulatory approvals [44][46] Question: Can you elaborate on the implications of the recent Omnibus Energy bill in Illinois? - Management highlighted that the bill introduces integrated resource planning and increased investment in energy efficiency, which could benefit the company in the long run [60][62] Question: How does the company view the potential for incremental investments from the Clean Grid Reliability Act? - Management noted that the biggest opportunity lies in energy efficiency investments, which are expected to double, providing regulatory asset treatment [68][70] Question: What is the breakdown of the 2 GW in advanced discussions for data centers? - Management clarified that the 2 GW in advanced discussions is specific to Missouri, with ongoing interest from developers in both states [91][92]

Financial Data and Key Metrics Changes - Ameren reported third quarter 2025 adjusted earnings of $2.17 per share, an increase from $1.87 per share in the third quarter of 2024, reflecting a $0.30 increase in adjusted earnings per share [5][25][26] - The company recorded a tax benefit of $0.18 per share in the third quarter of 2025, which was excluded from adjusted earnings [6][25] - The updated earnings guidance for 2025 is now in the range of $4.90-$5.10, up from the original range of $4.85-$5.05 [10][27] Business Line Data and Key Metrics Changes - Ameren invested over $3 billion in critical infrastructure upgrades during the first three quarters of 2025, including the replacement of 11,300 electric distribution poles and installation of 300 smart switches [6][8] - In Missouri, the company has invested more than $825 million in new or existing generation resources, with plans to add approximately 10 gigawatts of generation capacity by 2035 [8][9] - The transmission business placed in service 11 new or upgraded transmission substations and 40 miles of new or upgraded transmission lines [7] Market Data and Key Metrics Changes - Total normalized Ameren Missouri retail sales increased by approximately 1.5% across all customer classes over the trailing 12 months through September [26] - The company expects to see significant economic growth in the region, driven by investments in data centers and other sectors, which will necessitate incremental investment in utility infrastructure [4][12] Company Strategy and Development Direction - Ameren's strategy focuses on investing in electric and natural gas infrastructure to enhance reliability and safety while optimizing operations to keep customer rates affordable [4][5] - The company is actively engaging with stakeholders on economic development opportunities and regulatory frameworks to support new large-load customers [5][11] - Ameren aims to maintain a balanced energy mix, targeting approximately 70% generation from on-demand resources and 30% from intermittent resources by 2040 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve strong long-term earnings growth, projecting a compound annual growth rate of 6-8% from 2025 through 2029 [10][23] - The leadership team highlighted the importance of securing energy services agreements with hyperscalers to solidify sales growth expectations [39][54] - The company anticipates a bright future, driven by significant investment opportunities and economic growth in the communities it serves [5][12] Other Important Information - A leadership update was announced, with Michael Moehn transitioning to Group President of Ameren's Utilities and Lenny Singh becoming the Chief Financial Officer [24] - The company has a pipeline of investment opportunities exceeding $68 billion, which will be detailed in February [22] Q&A Session Summary Question: Will future revisions to generation plans be needed with the new data center agreements? - Management indicated that the current generation plans can accommodate the increased sales expectations from the new data center agreements, with further evaluations to be made as ramp rates are established [33][34] Question: What factors contribute to the current earnings guidance? - Management emphasized that the guidance reflects strong sales growth, new electric service rates, and increased expenditures for energy center reliability [38][39] Question: How does the company view the implications of the recent omnibus energy bill in Illinois? - Management noted that the bill introduces integrated resource planning and increased investment in energy efficiency, which could provide opportunities for Ameren [46][48] Question: Can you clarify the breakdown of advanced discussions for data centers? - Management confirmed that the 2 gigawatts in advanced discussions are primarily in Missouri, with significant opportunities for data center development in both Missouri and Illinois [60][61]

Financial Performance - Adjusted diluted EPS for the third quarter of 2025 was $2.17, compared to $1.87 in 2024[10] - Adjusted diluted EPS for the first nine months of 2025 was $4.25, compared to $3.86 in 2024[10] - The company expects 2025 diluted adjusted EPS to be in the range of $4.90 to $5.10[52], raised from the original guidance of $4.85 to $5.05[22] - The company expects 2026 diluted EPS to be in the range of $5.25 to $5.45[22], representing approximately 8.1% EPS growth compared to the 2025 original EPS guidance midpoint of $4.95[20, 22] Capital Investments and Growth - The company invested over $3 billion in capital YTD in electric, natural gas, and transmission infrastructure[13] - The company anticipates approximately 5.5% sales CAGR from 2025-2029 driven by data centers in Ameren Missouri[24, 26] - The company plans to invest $26.3 billion in infrastructure from 2025-2029[37, 43] - The company has a strong long-term infrastructure pipeline of over $68 billion from 2025-2034[38, 69] Regulatory and Strategic Initiatives - The company achieved constructive regulatory and legislative outcomes in Missouri, including MoPSC approval of settlements in electric and natural gas rate reviews and the enactment of SB 4 legislation[18] - MISO-approved Tranche 2.1 projects are estimated to cost $21.8 billion, with $1.3 billion assigned to Ameren[35] - The company expects to issue approximately 5.8 million common shares by year-end 2025 upon settlement of at-the-market (ATM) forward sale agreements[53, 61]

Core Insights - Ameren (AEE) reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $2.1 per share, and showing an increase from $1.87 per share a year ago, resulting in an earnings surprise of +3.33% [1] - The company generated revenues of $2.7 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 12.01%, compared to $2.17 billion in the same quarter last year [2] - Ameren's stock has increased approximately 14.3% year-to-date, slightly underperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Ameren's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, which includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.85 on revenues of $2.13 billion, and for the current fiscal year, it is $4.98 on revenues of $8.85 billion [7] Industry Context - The Utility - Electric Power industry, to which Ameren belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Third quarter 2025 GAAP net income attributable to common shareholders was $640 million, or $2.35 per diluted share, compared to $456 million, or $1.70 per diluted share in Q3 2024, representing a 40.3% increase in net income [2]. - Adjusted (non-GAAP) net income for Q3 2025 was $592 million, or $2.17 per diluted share, compared to $500 million, or $1.87 per diluted share in Q3 2024, reflecting a 18.4% year-over-year increase [4]. - The nine-month GAAP net income for 2025 was $1,204 million, or $4.43 per diluted share, compared to $975 million, or $3.65 per diluted share for the same period in 2024, marking a 23.4% increase [5]. - The nine-month adjusted net income for 2025 was $1,156 million, or $4.25 per diluted share, compared to $1,030 million, or $3.86 per diluted share in 2024, reflecting a 12.2% increase [5]. - Net income attributable to Ameren common shareholders for the nine months ended September 30, 2025, was $1,204 million, compared to $975 million for the same period in 2024, reflecting a 23% increase [24]. - Earnings per common share (basic) for Q3 2025 was $2.37, up from $1.71 in Q3 2024, representing a 39% increase [24]. - Operating income for Q3 2025 was $825 million, a 41% increase from $586 million in Q3 2024 [24]. - Net income for the nine months ended September 30, 2025, was $1,208 million, compared to $979 million for the same period in 2024, reflecting a year-over-year increase of 23.4% [28]. Revenue and Sales - Total operating revenues for Q3 2025 reached $2,699 million, a 24% increase from $2,173 million in Q3 2024 [24]. - Electric revenues increased to $2,563 million in Q3 2025, up 26% from $2,035 million in Q3 2024 [24]. - Ameren Missouri's total electric revenues increased to $1,685 million in the three months ended September 30, 2025, compared to $1,324 million in 2024, marking a rise of 27.3% [31]. - Electric sales for Ameren Total reached 19,009 million kilowatt-hours in the three months ended September 30, 2025, up from 18,565 million kilowatt-hours in 2024, a growth of 2.4% [31]. - Total gas revenues for Ameren reached $136 million in the three months ended September 30, 2025, slightly down from $138 million in 2024, a decrease of 1.4% [33]. Guidance and Outlook - The 2025 GAAP diluted EPS guidance range was raised to $5.08 to $5.28, and the adjusted EPS guidance range was raised to $4.90 to $5.10, up from the previous range of $4.85 to $5.05 [9]. - The company expects 2026 diluted EPS to be in the range of $5.25 to $5.45, indicating a positive outlook for future earnings [10]. - The earnings guidance for 2025 assumes normal temperatures for the last three months of the year, which may affect the final results [11]. Expenses and Costs - Higher operations and maintenance expenses were noted due to increased energy center and tree trimming expenditures, impacting overall earnings [3]. - Total operating expenses for Q3 2025 were $1,874 million, a 18% increase from $1,587 million in Q3 2024 [24]. - Fuel and purchased power expenses rose to $768 million in Q3 2025, compared to $499 million in Q3 2024, marking a 54% increase [24]. - Interest charges for the nine months ended September 30, 2025, were $570 million, up from $492 million in the same period of 2024 [24]. Assets and Liabilities - Total assets increased to $47,416 million as of September 30, 2025, up from $44,598 million on December 31, 2024, representing a growth of 4.1% [26]. - The company's total current liabilities decreased to $2,805 million as of September 30, 2025, from $3,413 million on December 31, 2024, a reduction of 17.7% [26]. - Long-term debt increased to $19,172 million as of September 30, 2025, compared to $17,262 million on December 31, 2024, an increase of 11.1% [26]. - Shareholders' equity rose to $12,780 million as of September 30, 2025, up from $12,114 million on December 31, 2024, reflecting a growth of 5.5% [26]. - The book value per share increased to $47.25 as of September 30, 2025, compared to $44.88 on December 31, 2024, an increase of 5.3% [33]. Strategic Initiatives - The company is focused on expanding renewable energy generation and improving energy efficiency programs as part of its strategic initiatives [22]. - Ameren is actively pursuing regulatory approvals for new energy projects, including wind and solar facilities, to enhance its energy portfolio [22].