Alliant Energy Corp (LNT) Reports Growth in 2023 Earnings Per Share
GAAP Earnings Per Share: $2.78 in 2023, up from $2.73 in 2022.
Non-GAAP Earnings Per Share: Temperature-normalized at $2.88 in 2023, representing a 5.5% growth from $2.73 in 2022.
Revenue Growth: Driven by revenue requirements and higher AFUDC from capital investments.
Operating Expenses: Lower operation and maintenance expenses at IPL and WPL.
Financing Costs: Higher financing expenses due to increased debt for funding capital expenditures.
2024 Earnings Guidance: Affirmed at $2.99 - $3.13 per share.
On February 15, 2024, Alliant Energy Corp (NASDAQ:LNT) released its 8-K filing, announcing its financial results for the year ended December 31, 2023. The company reported a slight increase in GAAP earnings per share (EPS) to $2.78, up from $2.73 in the previous year. When adjusted for temperature effects, non-GAAP EPS saw a more significant growth of 5.5%, rising to $2.88 from $2.73 in 2022.
Alliant Energy, the parent of Interstate Power and Light (IPL) and Wisconsin Power and Light (WPL), serves nearly 985,000 electric customers and 425,000 natural gas customers. The company also owns a 16% interest in American Transmission Co. and is involved in the generation and distribution of electricity and the distribution and transportation of natural gas.
Financial Highlights and Challenges
The increase in GAAP EPS was primarily attributed to higher revenue requirements and allowance for funds used during construction (AFUDC) from capital investments, alongside lower operation and maintenance expenses at IPL and WPL. These positive factors were partially offset by higher financing expenses, lower retail electric and gas sales due to net temperature impacts, and increased depreciation expenses.
Non-utility and Parent operations reported a GAAP EPS of $(0.22) in 2023, which was lower than the previous year, mainly due to higher interest expenses. The company also noted non-GAAP adjustments related to the remeasurement of deferred tax assets due to Iowa state income tax rate changes.
Income Statement and Balance Sheet Summary
Key details from the financial statements include:
- Revenue requirements and higher AFUDC from capital investments contributed $0.26 to the EPS variance.
- Higher financing expenses, including increased long-term debt and interest rates, resulted in a $0.21 reduction in EPS.
- The estimated net temperature impacts on retail electric and gas sales accounted for a $0.13 decrease in EPS.
- Lower other operation and maintenance expenses at IPL and WPL improved EPS by $0.07.
- Higher depreciation expenses reduced EPS by $0.07.
- Non-GAAP adjustments in 2023 amounted to a $0.04 reduction in EPS.
2024 Outlook and Analysis
Alliant Energy has affirmed its EPS guidance for 2024 to be in the range of $2.99 to $3.13. The guidance is based on several assumptions, including the ability to earn authorized rates of return, normal temperatures, constructive regulatory outcomes, stable economy, execution of capital expenditure and financing plans, and a consolidated effective tax rate of (7%).
The company's commitment to completing approximately 1,500 megawatts of zero-fuel cost, zero-emissions solar generation for its customers is a testament to its dedication to sustainability and investor returns. Alliant Energy's performance in 2023, despite challenges such as higher financing costs and temperature impacts, reflects its resilience and strategic focus on growth through capital investments.
For more detailed information on Alliant Energy's financial performance and future outlook, investors and interested parties are encouraged to review the full earnings release and supplemental materials available on the company's website.
Explore the complete 8-K earnings release (here) from Alliant Energy Corp for further details.
This article first appeared on GuruFocus.
