Alliant Energy (LNT) Q3 Earnings: What Awaits the Stock?
Alliant Energy CorporationLNT is set to report third-quarter 2016 results after the market closes on Nov 3. The company has posted in-line earnings last quarter, bringing the trailing four-quarter average to a negative 6.19%. Let's see how things are shaping up for this announcement.
Factors to Consider
Alliant Energy's earnings are expected to be positively impacted by above-average temperaturesin major parts of the U.S. during the third quarter.
The company has construction projects with expected investments of over $1.1 billion for 2016. In the first half of 2016, the company invested nearly $300 million in the electric distribution system to enhance infrastructural strength, reliability and resilience. These investments will further strengthen its existing operation, enabling it to provide efficient services to its customers and boost its performance.
Moreover, ongoing development activities and the resultant bottom-line improvement will help Alliant Energy to achieve its earnings growth target of 5-7% in 2016.
ALLIANT ENGY CP Price and EPS Surprise
Our proven model does not conclusively show that Alliant Energyis likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP:Alliant Energy has an Earnings ESP of 0.00%. This is because the Most Accurate estimate stands in line with the Zacks Consensus Estimate of 87 cents.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Though the company's Zacks Rank #3 increases the possibility of a beat, its 0.00% ESP makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the Utility Electric Power spaceworth considering on the basis of our model, which shows that it has the right combination of elements to post an earnings beat this quarter.
Ameren Corporation AEE is slated to announce third-quarter 2016 earnings on Nov 4.The company has an Earnings ESP of +2.90% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Avista Corp. AVA has an Earnings ESP of +4.76% and a Zacks Rank #2. The company is set to announce third-quarter 2016 earnings on Nov 1.
Pattern Energy Group Inc. PEGI has an Earnings ESP of +16.67% and a Zacks Rank #2. The company is slated to announce third-quarter 2016 earnings on Nov 7.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.