Alliant Energy (LNT) Up 0.5% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Alliant Energy (LNT). Shares have added about 0.5% 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 its most recent earnings report in order to get a better handle on the important drivers.

Alliant Energy's Q1 Earnings In Line, Revenues Up Y/Y

Alliant Energy Corporation reported first-quarter 2019 operating earnings of 53 cents per share, in line with the Zacks Consensus Estimate. The reported earnings came ahead of the year-ago figure by a penny.

The year-over-year improvement in earnings was primarily due to higher contribution from Utilities and Corporate Services.

Total Revenues

Total revenues in the first quarter came in at $987.3 million, increasing 7.7% year over year.

Operational Highlights

Total operating expenses were $810.4 million in the reported quarter, reflecting an increase of 7.9% from $750 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 cost of gas sold.

Operating income was $176.8 million, up 6.7% from $165.7 million in the year-ago quarter.

Interest expenses were $66.3 million, reflecting an increase of 11.9% from $59.2 million in the prior-year quarter.

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

Financial Update

Cash and cash equivalents were $10.1 million as of Mar 31, 2019, down from $20.9 million on Dec 31, 2018.

Long-term debt (excluding current portion) was $5,362.2 million as of Mar 31, 2019, higher than $5,246.3 million on Dec 31, 2018.

In first-quarter 2019, cash flow from operating activities was $181.1 million compared with $156.3 million in the 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.