Alliant Energy Corporation (NASDAQ:LNT): Poised For Long-Term Success?
The most recent earnings update Alliant Energy Corporation’s (NASDAQ:LNT) released in December 2018 suggested that the business gained from a robust tailwind, leading to a double-digit earnings growth of 12%. Investors may find it useful to understand how market analysts predict Alliant Energy’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Alliant Energy
Analysts’ outlook for the coming year seems rather subdued, with earnings climbing by a single digit 6.0%. The growth outlook in the following year seems much more optimistic with rates arriving at double digit 14% compared to today’s earnings, and finally hitting US$631m by 2022.
Although it’s informative understanding the growth year by year relative to today’s value, it may be more valuable analyzing the rate at which the company is growing every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Alliant Energy’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 7.0%. This means that, we can expect Alliant Energy will grow its earnings by 7.0% every year for the next few years.
Next Steps:
For Alliant Energy, there are three pertinent aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Future Earnings: How does LNT’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LNT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
