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Alliant Energy Corporation Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

Simply Wall St
·4 min read

As you might know, Alliant Energy Corporation (NASDAQ:LNT) recently reported its third-quarter numbers. Revenues were US$920m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.98 were also better than expected, beating analyst predictions by 15%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Alliant Energy

earnings-and-revenue-growth
earnings-and-revenue-growth

Following the latest results, Alliant Energy's seven analysts are now forecasting revenues of US$3.78b in 2021. This would be a solid 8.6% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to decrease 3.7% to US$2.59 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.80b and earnings per share (EPS) of US$2.59 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$57.50, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Alliant Energy analyst has a price target of US$62.00 per share, while the most pessimistic values it at US$49.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Alliant Energy's rate of growth is expected to accelerate meaningfully, with the forecast 8.6% revenue growth noticeably faster than its historical growth of 2.4%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Alliant Energy to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$57.50, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Alliant Energy going out to 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Alliant Energy (of which 1 is significant!) you should know about.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.