Alliant Energy’s Mixed Performance Raises Questions About Future Growth

Headquartered in Madison, Wisconsin, Alliant Energy Corporation (LNT) stands as a notable entity in the energy and utilities sector. With a market cap of $15.9 billion, the company is committed to providing reliable and sustainable energy solutions, serving millions of customers throughout the Midwest with its vast electric and gas utility network.

Stock Performance Has Lagged Behind the Market

Over the past year, Alliant Energy’s stock has struggled in comparison to the broader market. The stock saw a gain of 26.5%, while the S&P 500 Index ($SPX) advanced nearly 31.1%. In 2024, LNT stock has rallied 21.4%, but it still trails the SPX’s 24.1% year-to-date increase.

Diving deeper, LNT’s performance has also been below the Utilities Select Sector SPDR Fund (XLU), which has delivered returns of 29.2% over the past 52 weeks and 27% year-to-date.

Q3 Earnings Report: A Mixed Bag

After its Q3 earnings release on October 31, Alliant Energy’s shares fell 3.8%. The company reported earnings per share (EPS) of $1.15, marking a 9.5% increase compared to the previous year and surpassing the consensus estimate of $1.11. Revenue reached $1.08 billion, slightly above last year’s figures.

Despite the positive revenue trend, operating expenses rose by 1.7% to $768 million, adding pressure to profit margins. Moreover, the company adjusted its 2024 earnings guidance to a range of $2.99 to $3.06 per share.

Analyst Consensus and Price Targets

For the current fiscal year, which concludes in December, analysts anticipate that Alliant Energy’s EPS will grow by 7.8% to $3.04 on a diluted basis. However, the company’s earnings history has been inconsistent; it missed the consensus estimate in three out of the last four quarters, while exceeding expectations once.

Among the 12 analysts assessing LNT stock, the consensus rating stands at a “Moderate Buy,” including five “Strong Buy” opinions and seven “Holds.”

This analyst sentiment has remained stable over the past month. On November 5, Barclays (BCS) analyst Nicholas Campanella adjusted Alliant Energy’s price target down to $59 from $61, reflecting a “neutral to somewhat negative” outlook on its updated capital plan and revised EPS guidance.

The average price target of $62.85 suggests a small 1% premium above LNT’s current price levels, while the highest target of $67 indicates an upside potential of 7.6%.

On the date of publication, Rashmi Kumari did not hold positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.