Alliant Energy Shows Mixed Performance Amid Growing Demand
Alliant Energy Corporation (LNT), valued at a market cap of $15.5 billion, is a public utility holding company based in Wisconsin. It provides regulated electricity and natural gas services to customers in the Midwest through its main subsidiaries—Interstate Power and Light Company (IPL) in Iowa and Wisconsin Power and Light Company (WPL) in Wisconsin. The company caters to residential, commercial, and industrial customers.
Stock Performance: Surpassing the S&P 500
Over the past year, Alliant Energy stock has outperformed the broader market. The stock has appreciated by 25.1%, while the S&P 500 Index ($SPX) has increased by 20.5%. However, year-to-date in 2025, LNT shares have risen by only 2.5%, lagging behind the SPX’s 2.9% increase.
Comparison with Industry Peers
When looking closely at the Vanguard Utilities Index Fund ETF Shares (VPU), LNT has not kept pace. The ETF has experienced a rise of about 29.6% over the last year, and its 4.7% increase in 2025 outstrips LNT’s performance in the same period.
Quarterly Earnings Update
On October 31, following its Q3 earnings announcement, Alliant Energy’s stock dropped by 3.8%. The company revised its earnings guidance for 2024, forecasting earnings in the range of $2.99 to $3.06 per share. Despite the downturn, Alliant reported an earnings per share (EPS) of $1.15, which is a 9.5% rise from the previous year’s EPS of $1.05. This increase was largely due to higher revenue needs from capital investments at WPL, along with favorable income tax timing. The result exceeded the consensus estimate of $1.11. Total revenues reached $1.081 billion, which is a slight increase from $1.077 billion in the prior year and met market expectations.
Future Initiatives and Analyst Expectations
Alliant Energy has also revealed plans to support two new data centers in Cedar Rapids, Iowa, which are expected to generate an additional 1.1 gigawatts of demand by the end of 2028. This initiative aligns with the company’s strategy for economic development and is projected to raise peak demand by nearly 20% over the next five years.
As Alliant prepares for its FY2024 earnings announcement next week, analysts anticipate that the EPS will grow by 7.5% to $3.03 on a diluted basis. However, the company’s history of earnings surprises has been inconsistent; it missed expectations in three of the last four quarters, only beating the forecast once.
Analyst Ratings Shift
The consensus among the 12 analysts covering LNT stock is a “Moderate Buy,” which includes four “Strong Buy” ratings alongside eight “Holds.” This marks a more positive outlook than a month prior, with four analysts now recommending “Strong Buy.”
On December 12, Scotiabank analyst Andrew Weisel revised LNT’s status to “Sector-Perform” from “Outperform,” raising the price target from $64 to $67. While strong electricity demand is expected in 2025, the firm suggests utility stocks have a less favorable short-term outlook.
The average price target currently stands at $62.65, reflecting a 3.3% premium over LNT’s current price. The highest target of $67 indicates a potential upside of 10.5%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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