Alliant Energy Beats Earnings Estimate but Raises Flags for Future Performance
Alliant Energy (LNT) reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.11. This reflects an increase from earnings of $1.05 per share in the same quarter last year. These earnings figures account for non-recurring items.
This quarterly result indicates an earnings surprise of 3.60%. However, just three months ago, Alliant Energy’s expected earnings were $0.71 per share, but the actual result was only $0.57, leading to a surprise of -19.72%.
Over the past year, the company has only exceeded consensus EPS estimates once.
For the quarter ending September 2024, Alliant Energy, part of the Zacks Utility – Electric Power industry, reported revenues of $1.08 billion, which barely beat the Zacks Consensus Estimate by 0.06%. This is the same revenue figure as the previous year. Similar to the earnings performance, the company has only outperformed consensus revenue estimates once over the last four quarters.
The future trajectory of the stock’s price, based on these recent results and anticipated earnings, depends significantly on insights shared during the upcoming earnings call.
Slightly encouraging for investors, Alliant Energy’s shares have risen about 15.6% since the start of this year, in contrast to the S&P 500’s gain of 21.9%.
Investors Wonder: What Lies Ahead for Alliant Energy?
As Alliant Energy continues to fall behind the market this year, investors may be left pondering the stock’s future prospects.
Determining the answer is complicated. A useful method to gauge their potential is to examine the earnings outlook. It encompasses not only current consensus earnings expectations for upcoming quarters but also any recent changes in those estimates.
Research indicates a strong link between near-term stock performance and trends in earnings estimate revisions. Investors can monitor these changes on their own or use reliable tools like the Zacks Rank, which effectively utilizes earnings estimate revisions.
Leading up to this earnings report, the revision trend for Alliant Energy has been unfavorable. Although the situation may evolve following the latest results, the current status results in a Zacks Rank of #4 (Sell) for the stock, suggesting that shares may underperform shortly. To see the complete list of Zacks #1 Rank (Strong Buy) stocks, click here.
In the coming days, it will be important to watch how earnings estimates for future quarters and the current fiscal year evolve. Currently, the consensus EPS estimate stands at $0.71 on expected revenues of $1.22 billion for the upcoming quarter, and $3.05 on $4.21 billion in revenues for the full fiscal year.
It’s vital to consider that the overall outlook for the industry can also significantly influence stock performance. The Zacks Industry Rank places the Utility – Electric Power sector in the top 39% of over 250 Zacks industries. Historically, the top half of Zacks-ranked industries outpace the bottom half by over 2 to 1.
Looking to the competition, PG&E (PCG) is set to release its quarterly results for the period ending September 2024 on November 7.
Analysts expect PG&E to report earnings of $0.32 per share, marking an increase of 33.3% year-over-year. However, the consensus EPS estimate for PG&E has been revised down by 8.7% in the last 30 days to its current level.
PG&E’s revenue for the quarter is projected at $6.67 billion, reflecting a 13.3% rise from a year earlier.
Should You Consider Investing in Alliant Energy Corporation (LNT)?
Before making any investment decisions regarding Alliant Energy Corporation (LNT), you might want to explore other promising stocks to consider. Zacks Investment Research offers a free report detailing the seven best stocks to buy for the next month.
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