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Why Is Alliant Energy (LNT) Up 4.9% Since Last Earnings Report?

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A month has gone by since the last earnings report for Alliant Energy (LNT - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Alliant Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Alliant Energy’s Q2 Earnings Miss, Revenues Down Y/Y

Alliant Energy Corporation reported second-quarter 2019 operating earnings of 40 cents per share, lagging the Zacks Consensus Estimate of 46 cents by 13%. The reported earnings also declined from the year-ago figure by 3 cents.

The year-over-year decline in earnings was attributable to lower retail electric sales due to cooler temperatures.
 
Total Revenues

Total revenues in the second quarter came in at $790.2 million, decreasing 3.2% year over year.

Operational Highlights

Total operating expenses were $640.4 million in the reported quarter, reflecting a decline of 3.9% from $664.9 million in the year-ago period.
 
Operating income was $149.8 million, down marginally by 0.7% from $151.2 million in the year-ago quarter.

Interest expenses were $69.2 million, reflecting an increase of 12.9% from $61.3 million in the prior-year quarter.

During the second quarter, the company’s retail electric and gas utility customers grew 0.4% and 0.3% year over year, respectively. The increase in customer count had a positive impact on volumes of electric and natural gas sold during the quarter.

Financial Update

Cash and cash equivalents were $170.2 million as of Jun 30, 2019, up from $20.9 million on Dec 31, 2018.

Long-term debt (excluding current portion) was $5,438.1 million as of Jun 30, 2019, higher than $5,246.3 million on Dec 31, 2018.

In the first half of 2019, cash flow from operating activities was $276.9 million compared with $274.4 million in the comparable year-ago period.

Guidance

Alliant Energy reiterated its 2019 consolidated earnings per share guidance in the range of $2.17-$2.31. The guidance assumes normal temperature in its service territories during the year.

For Utilities (American Transmission Company LLC and Corporate Services), earnings per share are expected within $2.14-$2.24. For ATC Holdings, the company expects earnings per share in the range of 11-13 cents. For Non-regulated and Parent, earnings are likely to have a negative impact of 6-8 cents.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Alliant Energy has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending


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