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Alliant Energy (LNT) Q3 Earnings Beat Estimates, '18 View Up

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Alliant Energy Corporation (LNT - Free Report) reported third-quarter 2018 operating earnings of 85 cents per share, beating the Zacks Consensus Estimate by a penny. The reported earnings also increased 13.3% from 75 cents recorded in the year-ago quarter.

The year-over-year increase in earnings was due to warmer-than-normal temperatures in the third quarter compared with the prior-year period, in turn adding 2 cents to margins as well. In addition, new electric rates boosted earnings in the reported quarter.    

GAAP earnings in the third quarter were 87 cents compared with 73 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to a one-time gain of 2 cents in the Utilities and Corporate Services segment.

Total Revenues

Total revenues in the third quarter came in at $928.6 million, increasing 2.4% year over year. The revenue growth was due to higher year-over-year contribution from its Electric utility segment.

Alliant Energy Corporation Price, Consensus and EPS Surprise

 

Alliant Energy Corporation Price, Consensus and EPS Surprise | Alliant Energy Corporation Quote

Operational Highlights

Total operating expenses were $672.5 million in the reported quarter, reflecting a marginal increase of 0.3% from $670.6 million in the year-ago period. This increase in expenses can be attributed to a rise in electric production fuel and purchased power, as well as an increase in electric transmission service cost.

Operating income was $256.1 million, up 8.4% from $236.3 million in the year-ago quarter.

Interest expenses were $63.3 million, reflecting an increase of 17.4% from $53.9 million in the prior-year quarter.

Financial Update

Cash and cash equivalents were $239.7 million as of Sep 30, 2018, up from $27.9 million on Dec 31, 2017.

Long-term debt (excluding current portion) was $5,248.2 million as of Sep 30, 2018, higher than $4,010.6 million on Dec 31, 2017.

In the first nine months of 2018, cash flow from operating activities was $442.2 million compared with $1451.3 million in the corresponding period of 2017.

Guidance

Alliant Energy upwardly revised its 2018 consolidated earnings per share guidance to the range to $2.13-$2.19 from $2.04-$2.18 per share projected earlier.

For Utilities (American Transmission Company LLC and Corporate Services), earnings per share are now expected within $2.04-$2.07. For Non-regulated and Parent & ATC, the company expects earnings per share in the range of 9-12 cents.

Other Utility Releases

American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2018 operating earnings per share (EPS) of $1.25, surpassing the Zacks Consensus Estimate of $1.23 by 1.6%.

NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.
 
DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

Zacks Rank

Currently, Alliant Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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