Alliant Energy's (LNT) To Gain From Capital Investment Plans
Zacks Investment Research | Dec 18, 2019 09:32PM ET
Alliant Energy Corporation’s (NASDAQ:LNT) earnings are expected to benefit from stable state economies in its service areas and compelling prospects for new electric generation capacity.
This Zacks Rank #2 (Buy) utility is a promising investment option as it continues to boost shareholders’ value.
Systematic Investment
The company plans to invest $6.7 billion over the next four years to strengthen the electric and gas distribution network as well as add natural gas and renewable assets to its generation portfolio. Out of the total outlay, the company plans to invest nearly $3.2 billion during the next four years to strengthen electric and natural gas distribution as well as generation portfolio.
Growth Projections
Earnings estimates for 2019 and 2020 rose 5.99% and 6.09% on a year-over-year basis to $2.30 and $2.44 per share, respectively. The company’s long-term (three to five years) earnings growth is pegged at 5.49%.
The company currently targets long-term annual earnings growth in the range of 5-7% from 2018 levels. We expect Alliant Energy to keep up the good performance till 2022 on the back of its capital expenditure plan, modest sales growth and constructive regulatory outcomes.
Price Performance
In the past year, shares of Alliant Energy have rallied 23.9% compared with the Zacks Investment Research
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