Headquartered in Madison, Wisconsin, Alliant Energy Corporation (LNT) is a prominent player in the energy and utilities sector. With a market cap of $15.9 billion, Alliant Energy is dedicated to delivering reliable and sustainable energy solutions, serving millions of customers across the Midwest through its extensive electric and gas utility network.
Alliant Energy stock has underperformed the broader market over the past year. The stock gained 26.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, LNT stock is up 21.4%, while SPX is up 24.1% on a YTD basis.
Zooming in further, LNT has underperformed the Utilities Select Sector SPDR Fund (XLU). The stock has lagged behind the exchange-traded fund’s 29.2% returns over the past 52 weeks and 27% on a YTD basis.
Alliant Energy’s shares declined 3.8% following its Q3 earnings release on Oct. 31. The company reported EPS of $1.15, a 9.5% year-over-year increase, exceeding consensus estimates of $1.11. Revenue came in at $1.08 billion, slightly higher than the prior year.
However, operating expenses rose by 1.7% to $768 million, putting some pressure on margins. Additionally, the company narrowed its 2024 earnings guidance to a range of $2.99 to $3.06 per share.
For the current fiscal year, ending in December, analysts expect Alliant Energy’s EPS to grow 7.8% to $3.04 on a diluted basis. The company’s earnings surprise history is mixed. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 12 analysts covering LNT stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings and seven “Holds.”
This configuration has been consistent over the past month.
On Nov. 5, Barclays (BCS) analyst Nicholas Campanella lowered Alliant Energy's price target to $59 from $61, citing a "neutral to somewhat negative" view of its updated capital plan and slightly revised EPS guidance.
The mean price target of $62.85 represents a 1% premium to LNT’s current price levels. The Street-high price target of $67 suggests an upside potential of 7.6%.
