On 30 June 2019, Alliant Energy Corporation (NASDAQ:LNT) announced its earnings update. Overall, analysts seem cautiously optimistic, with earnings expected to grow by 12% in the upcoming year against the past 5-year average growth rate of 7.0%. With trailing-twelve-month net income at current levels of US$512m, we should see this rise to US$573m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Exciting times ahead?
The view from 7 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of LNT's earnings growth over these next few years.
By 2022, LNT's earnings should reach US$653m, from current levels of US$512m, resulting in an annual growth rate of 7.5%. This leads to an EPS of $2.61 in the final year of projections relative to the current EPS of $2.19. With a current profit margin of 14%, this movement will result in a margin of 16% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Alliant Energy, I've put together three essential aspects you should further examine:
- 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.
- Valuation: What is Alliant Energy worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Alliant Energy is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Alliant Energy? 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 email@example.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.