Alliant Energy (LNT) Q3 Earnings Miss, Updates Guidance

Zacks

Alliant Energy Corporation LNT reported third-quarter 2017 operating earnings from continuing operations of 75 cents per share, missing the Zacks Consensus Estimate of 88 cents by 14.8%. Reported earnings also missed year-over-year figureof 80 cents by 6.3%.

Total Revenues

Total revenues in the third quarter came in at $906.9 million, 1.9% lower year over year. The drop was owing to lower year-over-year contribution from its Electric and Non-regulated utility.

Operational Highlights

Total operating expenses were $675.4 million in the reported quarter, reflecting a decrease of nearly 11.4% from $762 million in the year-ago period. This can be attributed to a fall in electric production fuel, purchased power and electric transmission service expenses during the quarter.

Operating income was $231.5million, up 42.4% from $162.6 million in the year-ago quarter.

Interest expenses were $53.9 million, an increase of 10.5% from $48.8 million in the year-ago quarter.

Financial Update

Cash and cash equivalents were $9.2 million as of Sep 30, 2017, rising from $8.2 million as of Dec 31, 2016.

Long-term debt (excluding current portion) was at $4,255.1 million as of Sep 30, 2017, higher than $4,315.6 million as of Dec 31, 2016.

For nine months ended as of Sep 30, 2017, Cash used in operating activities was $883.4 million, compared with $654 million in the year-ago comparable period.

Guidance

Alliant Energy has narrowed 2017 consolidated earnings per share guidance from $1.92-$2.06 to $1.89-$1.97 per share in the reported quarter.

For Utilities, American Transmission Company LLC and Corporate Services, revised earnings per share are expected in the range of $1.88-$1.94 from previously announced guidance range of $1.90-$2.02. For Non-regulated and Parent, the company expects earnings per share in the range of 1-3 cents from prior guidance of 2-4 cents.

Additionally, its 2018 consolidated earnings per share guidance is expected to be in the range of $2.04-$2.18 per share.

The company has updated projected capital expenditures for 2017 through 2021, to be approximately $6.9 billion. Additionally, it predicts aggregate capital expenditures of $5.0 billion for 2022 through 2026.

Alliant Energy Corporation Price, Consensus and EPS Surprise

Peer Releases

WEC Energy Group WEC reported third-quarter 2017 operating earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents by 1.5%.

NextEra Energy, Inc. NEE reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.77 by 5.7%.

FirstEnergy Corp. FE reported third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 86 cents by 12.8%.

Zacks Rank

Alliant Energy carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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