Alliant Energy (LNT) Beats Q2 Earnings, Lags Revenues

Zacks

Alliant Energy Corporation LNT reported second-quarter 2015 operating earnings of 67 cents per share, surpassing the Zacks Consensus Estimate by 6 cents or 9.8%. Earnings also climbed 19.6% year over year.

Higher earnings in the second quarter can be attributed to lower retail electric customer billing credits at Interstate Power and Light Company (“IPL”) and lower energy efficiency cost recovery amortizations at Wisconsin Power and Light Company (“WPL”).

GAAP earnings in the quarter came in at 60 cents per share, up 8.9% from 56 cents reported a year ago. The difference between the operating and GAAP figures is due to a 6 cent loss from the sale of IPL's Minnesota electric and gas distribution assets and a loss of 1 cent from discontinued operations.

Total Revenues

Total revenues in the second quarter were $717.2 million, missing the Zacks Consensus Estimate of $784 million by 8.5%. The top line also declined 4.4% year over year.

Operational Highlights

Total operating expenses were $608.2 million in the reported quarter, down nearly 6% from $647.0 million incurred in the year-ago period. Expenses decreased primarily due to lower electric production fuel and purchased power expense and a decline in cost of gas sold.

Operating income was $109 million, up 5.5% from $103.3 million in the year-ago quarter.

Interest expenses increased marginally to $46.5 million from $45.1 million in the year-ago quarter.

Financial Highlights

Cash and cash equivalents were $54.8 million as of Jun 30, 2015, down from $56.9 million as of Dec 31, 2014.

Long-term debt (excluding current portion) was $3,717.4 million as of Jun 30, 2015, compared with nearly $3,606.7 million as of Dec 31, 2014.

Cash flow from operating activities in the first half of 2015 were $517.3 million, up from $448.2 million in the year-ago comparable period.

Guidance

Alliance Energy reiterated its consolidated earnings guidance for 2015 in the band of $3.45 to $3.75 per share.

For Utilities and Corporate Services, earnings expectations lie in the range of $3.40 to $3.60 and for Non-regulated and Parent, the company expects earnings in the range of 5–15 cents per share.

Other Utility Releases

The following electric utilities also surpassed the Zacks Consensus Estimate for the second quarter:

Dominion Resources Inc. D reported second-quarter 2015 operating earnings of 73 cents per share, surpassing the Zacks Consensus Estimate by a penny.

NextEra Energy, Inc. NEE announced second-quarter 2015 adjusted earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.50 by 4%.

FirstEnergy Corp. FE reported second-quarter 2015 operating earnings of 53 cents per share, outpacing the Zacks Consensus Estimate by 10.4%.

Zacks Rank

Alliant Energy currently carries a Zacks Rank #3 (Hold).

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