Alliant Energy (LNT) Earnings on Par in Q2, Outlook Same
Alliant Energy Corporation LNT reported second-quarter 2016 operating earnings from continuing operations of 37 cents per share, in line with the Zacks Consensus Estimate. Earnings were higher than the year-ago figure of 34 cents by 8.8%.
The upside in earnings in the second quarter was primarily due to increasing rate base compared with the previous year.
GAAP earnings in the reported quarter were 37 cents per share compared with 31 cents per share in the second quarter of 2015.
Total Revenue
Total revenue in the second quarter came in at $754.6 million, up 5.2% year over year. Results were boosted by higher electric and gas sales revenue.
Operational Highlights
Total operating expenses were $626.0 million in the reported quarter, up nearly 2.9% from $608.2 million in the year-ago period. The increase in total operating expenses was due to higher Electric production fuel and purchased power (up 7.7% y/y) and Electric transmission service (11.5% y/y) expenses.
Operating income was $128.6 million, up 17.9% from $109 million in the year-ago quarter.
Interest expenses were $48 million, up 3.2% year over year.
ALLIANT ENGY CP Price, Consensus and EPS Surprise
ALLIANT ENGY CP Price, Consensus and EPS Surprise | ALLIANT ENGY CP Quote
Financial Update
Cash and cash equivalents were $6.5 million as of Jun 30, 2016, up from $5.8 million as of Dec 31, 2015.
Long-term debt (excluding current portion) as of Jun 30, 2016, was $3,588.4 million, up from $3,522.7 million as of Dec 31, 2015.
Cash used for operating activities in the first half of 2016 was $500.8 million compared with $470.3 million in the year-ago period.
Common Stock Split
As planned, Alliant Energy carried out a 2-for-1 stock split of the company's common stock during the second quarter.
The authorized shares of Alliant Energy increased from 240 million shares to 480 million shares to implement the stock split. The additional shares were distributed on May 19, 2016, and post-split trading began on May 20, 2016.
Guidance
Alliant Energy reiterated its 2016 consolidated earnings per share guidance in the range of $1.80–$1.95.
For Utilities, American Transmission Company LLC and Corporate Services, earnings are expected in the range of $1.77 to $1.90 per share. For Non-regulated and Parent, the company expects earnings in the range of 3 cents to 5 cents per share.
Peer Releases
DTE Energy Company DTE reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%.
CMS Energy Corporation CMS reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
IDACORP, Inc. IDA recorded operating earnings of $1.12 per share in the second quarter of 2016, beating the Zacks Consensus Estimate of 98 cents by 14.3%.
Zacks Rank
Alliant Energy currently carries a Zacks Rank #2 (Buy).
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