Alliant Energy Corporation (LNT - Free Report) is slated to report first-quarter 2019 results after the market closes on May 2. In the last reported quarter, the company delivered in-line earnings. Let’s see how things are shaping up for this earnings season.
Factors to Consider
Alliant Energy’s first-quarter earnings are expected to gain from increasing rate base and modest sales growth in its service territories. The company expects the upcoming earnings to improve 6% year over year on the back of strong pipeline of investments in renewable energy, and electric and gas distribution.
The Zacks Consensus Estimate for first-quarter earnings per share is 53 cents, which indicates growth of 1.9% from the year-ago reported figure. The new rate of electricity, which became effective from 2018, is anticipated to boost first-quarter earnings.
Our proven model shows that Alliant Energy is unlikely to beat estimates in the to-be-reported quarter because it does not have the right combination of the 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. Alliant Energy lacks the right mix.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company’s Earnings ESP is -2.86%. This is because the Most Accurate Estimate stands at 51 cents and the Zacks Consensus Estimate is pegged at 38 cents.
Zacks Rank: Alliant Energy carries a Zacks Rank #3. Its favorable rank, when combined with the negative ESP, lowers the possibility of an earnings surprise this season.
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
Here are a few companies worth considering from the same industry, as these have the right combination of elements to beat on earnings in the upcoming releases.
Entergy Corporation (ETR - Free Report) is expected to release first-quarter results on May 1. It has an Earnings ESP of +3.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PNM Resources Inc. (PNM - Free Report) is expected to release first-quarter results on May 7. It has an Earnings ESP of +3.45% and a Zacks Rank of 2.
Pattern Energy Group Inc.(PEGI - Free Report) is expected to release first-quarter results on May 10. It has an Earnings ESP of +115.50% and a Zacks Rank of 3.
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