Alliant Energy Corporation (LNT) reported fourth-quarter 2014 operating earnings of 54 cents per share, just short of the Zacks Consensus Estimate and the prior-year figure of 55 cents by 1.8%.
For 2014, earnings were reported at $3.48 per share, ahead of the Zacks Consensus Estimate of $3.47 by a cent. Earnings were also up 5.1% from 2013.
Higher earnings in 2014 can be attributed to lower purchased power capacity costs from power purchase agreements at various Alliant Energy subsidiaries.
Total Revenues
Total revenues in the fourth quarter were $804.1 million, lagging the Zacks Consensus Estimate of $818.4 million by 1.7%. The top line also declined 3.4% year over year due to lower electric and gas sales owing to unfavorable weather.
Revenues in 2014 were $3,350.3 million, reflecting an increase of 2.2% from the prior year.
Operational Highlights
Total operating expenses were $712.8 million in the reported quarter, down 1.5% from $724.0 million incurred in the year-ago period. Expenses decreased due primarily to an almost 100% decline in expenses relating to purchased electric capacity.
Operating income was $91.3 million, down 15.9% from $108.6 million in the year-ago quarter.
Interest expenses increased marginally to $45.7 million from $45.2 million in the year-ago quarter.
Financial Highlights
Cash and cash equivalents surged to $56.9 million as of Dec 31, 2014, from $9.8 million as of Dec 31, 2013.
Long-term debt (excluding current portion) was $3.6 billion as of Dec 31, 2014, compared with nearly $3.0 billion as of Dec 31, 2013.
Cash flow from operating activities at year-end 2014 was $891.6 million, up from $731.0 million at the end of 2013.
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, 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 cents to 15 cents per share.
The company’s expected 2015 earnings growth rate is in line with the long-term projection of 5–7%.
Other Utility Releases
The following electric utilities also missed the Zacks Consensus Estimate for the quarter by a cent:
Wisconsin Energy Corporation (WEC) which reported fourth-quarter 2014 adjusted earnings of 56 cents per share.
NextEra Energy, Inc. (NEE) announcing fourth-quarter 2014 adjusted earnings of $1.03 per share.
PG&E Corporation (PCG) reporting fourth-quarter 2014 earnings of 53 cents per share.
Zacks Rank
Alliant Energy currently carries a Zacks Rank #3 (Hold).
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