Q3 Earnings Preview for Alliant Energy (NasdaqGS:LNT)

in EARNINGS/INVESTING IDEAS by

Alliant Energy Corporation (NasdaqGS:LNT) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $0.89/share on revenue of $902.8 million. The consensus earnings per share (EPS) of $0.89/share is based on a poll of 6 analysts and represents a decline in eps of −5.9% over the same quarter last year, when the company reported earnings of $0.94/share.

The revenue forecast of $902.8 million based on a poll of 2 analysts implies a year-over-year (YoY) decline in revenue of −8.8%. Last year the company reported $990.2 million in revenue for the quarter.

Expected to report EPS contraction of −5.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $902.77 $990.20 −8.8%
EPS $0.89 $0.94 −5.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from Alliant Energy Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.47 $0.54 14.1% Beat
Q1, 2020 $0.54 $0.72 32.5% Beat
Q4, 2019 $0.43 $0.44 3.1% Beat
Q3, 2019 $0.92 $0.94 1.8% Beat
Q2, 2019 $0.44 $0.40 −9.0% Missed
Q1, 2019 $0.51 $0.53 3.3% Beat
Q4, 2018 $0.35 $0.36 2.4% Beat
Q3, 2018 $0.84 $0.85 1.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 3.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $52.87 $54.72 3.5% Increase
May 7, 2020 $46.17 $47.99 3.9% Increase
February 20, 2020 $59.47 $59.14 −0.5% Decline
November 6, 2019 $51.71 $51.50 −0.4% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.86, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.86 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

Alliant Energy Corporation is currently trading at $56.83/share, up 0.3% for the day. The company is trading at approximately 94.3% of its 52-week high of $60.28/share. The company’s stock price is up 3.9% since the last earnings report and up 3.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 71.32 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:LNT Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 22.10 and a forward P/E multiple of 23.16.

Alliant Energy Corporation’s current share price also implies a price-to-book (P/B) multiple of 2.56. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $56.83
P/E Ratio 22.1x
P/E Ratio (Fwd) 23.2x
PEG Ratio 1.0
Total Debt / Total Capital 32.0%
Levered Free Cash Flow -$838.6 million
EV / EBITDA 15.0x

Finbox

Alliant Energy Corporation is a large-cap stock with a market capitalization of $14.187 billion and a total enterprise value of $20.944 billion. The company operates in the Utilities sector and the Electric Utilities industry.

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the Midwest region of the United States. It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. As of December 31, 2019, IPL supplied electricity to 490,000 retail customers and natural gas to 225,000 retail customers; and WPL supplied electricity to 480,000 retail customers and natural gas to 195,000 retail customers. It offers electric utility services to retail customers in the farming, agriculture, industrial manufacturing, chemical, and packaging industries. In addition, the company holds investments in various businesses, which provide freight services through a short-line railway between Cedar Rapids and Iowa City, Iowa; a barge terminal and hauling services on the Mississippi River; customized supply chain solutions; freight and logistics brokering services; and other transfer and storage services. Further, it owns a 347 megawatt (MW) natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a 225 MW wind farm located in Oklahoma. Alliant Energy Corporation was founded in 1917 and is headquartered in Madison, Wisconsin.

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