Alliant Energy Corp. Hits 52-Week High - Analyst Blog

On March 26, 2014, the shares of Alliant Energy Corporation LNT touched a 52-week high of $56.05. The share price was finally closed at $55.67, up 1.5% from the previous day's closing. We believe that the company's favorable fourth-quarter 2013 results, disciplined capital spending in growth projects and payment of regular dividend led to the surge in share price.

Alliant Energy's fourth-quarter 2013 operating earnings were 55 cents per share, surpassing the Zacks Consensus Estimate of 52 cents by 5.8%. However, quarterly earnings plummeted 11.3% year over year. On the revenue front, the company's top line beat the estimates and the year-ago results primarily due to strong contribution from all divisions.

Alliant Energy is currently expanding its operations. In 2013, the company invested $731.6 million as construction and acquisition expenditures under the utility business and plans to invest $945 million in 2014. Alliant Energy intends to construct an approximate 600-megawatt MW natural gas-fired combined-cycle electric generating unit in Marshalltown, IA. We note that a few industrial customers have extended their operations in Iowa. The scheduled completion of this project will enable the company to meet increased customer demand.

Alliant Energy is strongly following the government's emission control regulations besides enhancing the power generation capacity. Currently, the company is installing baghouse and scrubber at its Ottumwa facility.

As of Dec 31, 2013, Alliant Energy has cash and cash equivalents of $10 million and available capacity of $721 million under the revolving credit facilities. A stable liquidity position supports the company's steady organic development activities.

Apart from investing in internal projects, Alliant Energy has a stable dividend payment history. The company is paying dividends since 1946. On Feb 14, 2014, the company paid 51 cents per share as dividend. In 2013, the company distributed $208.3 million as common stock dividend to its shareholders.

Alliant Energy currently has a Zacks Rank #3 (Hold). Other better-ranked stocks in this industry include Public Service Enterprise Group Inc. PEG, American Electric Power Co., Inc. AEP and Avista Corporation AVA. While Public Service Enterprise holds a Zacks Rank #1 (Strong Buy), American Electric Power and Avista Corporation carry a Zacks Rank #2 (Buy).