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What's in Store for Alliant Energy (LNT) in Q3 Earnings?

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Alliant Energy Corporation (LNT - Free Report) is slated to report third-quarter 2017 results after the market closes on Nov 2. In the second quarter, the utility company delivered a positive earnings surprise of 5.13%. Let’s see how things are shaping up for this earnings season.

Factors to Consider

Alliant Energy’s earnings are expected to gain from its robust capital expenditure plans and constructive regulatory decisions. The progress already made by the company in its wind generation expansion plans will aid in meeting its long-term earnings growth objective of 5% to 7%.

The Zacks Consensus Estimate for third-quarter earnings per share is 85 cents, which reflects year-over-year growth of 6.25%. The new electric rates which became effective from 2017 have helped the company increase earnings.

Alliant Energy serves the states in Midwest region that experienced both below average summer temperature and above average temperature during the third quarter. So, the likely demand increase in some states is going to be offset by drop in demand in others.

Earnings Whisper

Our proven model shows that Alliant Energy is not likely to beat estimates because it does not have the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates and the company has the right mix.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: The Earnings ESP is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 85 cents.

Zacks Rank: Alliant Energy’s currently carries a Zacks Rank #4 (Sell).
 
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
 
You can consider stocks in the Zacks Utility Power industry that are expected to report a positive earnings surprise this earnings season.

Fortis Inc. (FTS - Free Report) is expected to report third-quarter earnings on Nov 2. The company has a Zacks Rank #3 and an Earnings ESP of +3.60%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NRG Energy (NRG - Free Report) is expected to report third-quarter earnings on Nov 2. The company has a Zacks Rank #3 and an Earnings ESP of +7.92%.

Exelon Corporation (EXC - Free Report) is expected to report third-quarter earnings on Nov 2. The company has a Zacks Rank #3 and an Earnings ESP of +0.48%.

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