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Can Alliant Energy (LNT) Spring a Surprise in Q1 Earnings?
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Alliant Energy Corporation (LNT - Free Report) is set to report first-quarter 2017 results on May 3, after market close. The company posted break-even earnings in the last quarter. Let’s see how things are shaping up for this announcement.
Factors to Consider
Alliant Energy’s earnings are likely to have faced the brunt of above-average temperatures in the winter months of January and February this year. The company mainly serves in two states – Iowa and Wisconsin. Both the states experienced comparatively milder temperatures as a result of which the demand for electricity was lower than expected.
The company's long-term debt is on the rise. At the end of 2016, long-term debt totaled $4.36 billion, compared with $3.87 billion at the end of 2015. The Federal Reserve raised interest rates for two consecutive quarters (Dec 2016 and Mar 2017), and has plans to hike the rates further this year, which will definitely hurt utilities.
However, amid these headwinds, Alliant Energy expects year-over-year retail sales growth of approximately 1% in 2017, from commercial and industrial class.
Also, the company received approval to raise its electric and natural gas rates. The hike in rates will drive the company's top line in the first quarter and full year.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Alliant Energy this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Alliant Energy has an Earnings ESP of 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of 45 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though the company’s Zacks Rank #2 increases the possibility of a beat, its 0.00% ESP makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Alliant Energy does not have the right combination, instead, investors can consider companies from the Utility - Electric Power industry that has the right combination of elements to post an earnings beat this quarter.
Dominion Resources, Inc. (D - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. It is scheduled to report first-quarter 2017 earnings on May 4.
Pattern Energy Group Inc. has an Earnings ESP of + 300.00% and a Zacks Rank #3. It is slated to report first-quarter 2017 earnings on May 9.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Can Alliant Energy (LNT) Spring a Surprise in Q1 Earnings?
Alliant Energy Corporation (LNT - Free Report) is set to report first-quarter 2017 results on May 3, after market close. The company posted break-even earnings in the last quarter. Let’s see how things are shaping up for this announcement.
Factors to Consider
Alliant Energy’s earnings are likely to have faced the brunt of above-average temperatures in the winter months of January and February this year. The company mainly serves in two states – Iowa and Wisconsin. Both the states experienced comparatively milder temperatures as a result of which the demand for electricity was lower than expected.
The company's long-term debt is on the rise. At the end of 2016, long-term debt totaled $4.36 billion, compared with $3.87 billion at the end of 2015. The Federal Reserve raised interest rates for two consecutive quarters (Dec 2016 and Mar 2017), and has plans to hike the rates further this year, which will definitely hurt utilities.
However, amid these headwinds, Alliant Energy expects year-over-year retail sales growth of approximately 1% in 2017, from commercial and industrial class.
Also, the company received approval to raise its electric and natural gas rates. The hike in rates will drive the company's top line in the first quarter and full year.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Alliant Energy this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Alliant Energy has an Earnings ESP of 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of 45 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alliant Energy Corporation Price and EPS Surprise
Alliant Energy Corporation Price and EPS Surprise | Alliant Energy Corporation Quote
Zacks Rank: Though the company’s Zacks Rank #2 increases the possibility of a beat, its 0.00% ESP makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Alliant Energy does not have the right combination, instead, investors can consider companies from the Utility - Electric Power industry that has the right combination of elements to post an earnings beat this quarter.
NiSource, Inc (NI - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #2. It is slated to report first-quarter 2017 earnings on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dominion Resources, Inc. (D - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. It is scheduled to report first-quarter 2017 earnings on May 4.
Pattern Energy Group Inc. has an Earnings ESP of + 300.00% and a Zacks Rank #3. It is slated to report first-quarter 2017 earnings on May 9.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>