Alliant Energy LNT is scheduled to release fourth-quarter 2024 results on Feb. 20, after market close. The company delivered a negative earnings surprise of 19.7% in the last reported quarter.

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Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors That Might Have Impacted LNT's Q4 Performance

In September 2024, the IUC issued an order authorizing annual base rate increases of $185 million for Alliant Energy’s subsidiary Interstate Power and Light Company’s (“IPL”) retail electric customers, and $10 million for IPL’s retail gas customers, for October 2024 through September 2025. This is likely to have boosted the top line in the to-be-reported quarter.

In November 2024, Alliant Energy placed two solar projects with a combined capacity of 200 megawatts (MW) into service. The150-MW Wever Solar Project in Lee County is the largest solar project in Iowa. Together with the 50-MW Creston Solar Project in Union County, the company expects the projects to generate enough electricity to power approximately 40,000 homes annually. These projects are likely to have enhanced earnings in the fourth quarter.

The company’s quarterly earnings are also expected to have continued to benefit from its capital investments.

However, higher depreciation expenses and financing costs might have also offset some positives in the fourth quarter.

LNT’s Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at 68 cents per share, indicating a year-over-year improvement of 41.7%.

The Zacks Consensus Estimate for revenues is pinned at $1.20 billion, implying a year-over-year increase of 24.4%.

The Zacks Consensus Estimate for total utility electric sales retail is pinned at 5,917.96 thousand megawatt-hours (MWh), down 0.3% year over year. The consensus mark for total electricity delivered is pegged at 7,627.53 MWh, up 0.2% year over year.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Alliant Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.  
 

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Alliant Energy carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.

OGE Energy OGE is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 19. It has an Earnings ESP of +2.41% and a Zacks Rank #2 at present.

OGE’s long-term (three to five years) earnings growth rate is 5.92%. The Zacks Consensus Estimate for earnings is pinned at 48 cents per share, which implies a year-over-year increase of 100%.

CenterPoint Energy CNP is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 20. It has an Earnings ESP of +0.63% and a Zacks Rank #2 at present.

CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for earnings is pinned at 40 cents per share, which implies a year-over-year increase of 25%.

Vistra VST is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 27. It has an Earnings ESP of +3.81% and a Zacks Rank #2 at present.

VST’s long-term earnings growth rate is 23.05%. The Zacks Consensus Estimate for earnings is pinned at $1.14 per share, which implies a year-over-year increase of 337.5%.

 

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