Alliant Energy Hits a New 52-Week High - Analyst Blog
April 11 2014 - 9:50AM
Zacks
On April 10, 2014, the shares of
Alliant Energy Corporation (LNT) hit a 52-week
high of $57.37 in intraday trading to finally close a trifle lower
at $56.52. This comes to a gain of 13.8% over the past one-year
period. The company has been performing well, registering positive
earnings surprises in the last four quarters, with an average beat
of 9.85%.
Alliant Energy’s performance is attributed to a steadily increasing
pool of customers in its service territories. The company was thus
able to sell higher volumes of electricity and natural gas in the
fourth quarter compared to the prior year comparable period. In
addition, industrial customers are expanding their operations,
thereby creating further avenues for demand growth in 2014.
Improvement in the economies of Iowa and Wisconsin and a lower
unemployment rate in these states compared to the national average
are expected to boost demand for Alliant’s services.
Recently, Alliant Energy entered into an agreement with Iowa
Utilities Board for not increasing the base electricity rate until
2016. In addition, the company applied to keep the electric base
rates unchanged in Wisconsin through 2016 (decision expected in
second quarter 2014). We believe these moves will allow the company
to retain and add more customers in its service territories.
Alliant Energy is also investing judiciously to create a balanced
generation portfolio, which will attract lesser environmental ire.
In addition, Alliant Energy plans to invest nearly $190 million in
the 2014 to 2016 time period to strengthen its transmission
network. These planned investments will help serve its customers in
a more efficient manner.
Alliant Energy reported earnings per share of $3.31 in 2013. The
company projected earnings in the range of $3.25 to $3.40 per share
for 2014 taking into consideration higher Interstate Power and
Light Company and Wisconsin Power and Light Company rate base.
The Zacks Consensus Estimate for 2014 inched up 0.6% over the last
60 days to $3.40 per share. This reflects a year-over-year
estimated increase of 4.58%. The long-term earnings growth is
projected at 5.50%.
Alliant Energy currently carries a Zacks Rank #3 (Hold). Other
companies in the industry worth considering are NRG Energy,
Inc. (NRG), Otter Tail Corporation (OTTR)
and Public Service Enterprise Group Inc. (PEG),
all presently holding a Zacks Rank #1 (Strong Buy).
ALLIANT ENGY CP (LNT): Free Stock Analysis Report
NRG ENERGY INC (NRG): Free Stock Analysis Report
OTTER TAIL CORP (OTTR): Free Stock Analysis Report
PUBLIC SV ENTRP (PEG): Free Stock Analysis Report
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