(LNT) - Crushed the consensus earnings estimate by 25.8%

Alliant Energy Corporation (LNT) exceeded analysts' earnings estimates for five consecutive quarters by an average margin of 45.2%. This Zacks #1 Rank stock recently upped its 2006 earnings per share guidance. The Board of Directors authorized a $200 million share repurchase plan in early August and declared a quarterly dividend of 28.75 cents per share in mid July. LNT has a price-to-book ratio of only 1.7, compared to 5.2 for the market. Full Analysis Alliant Energy Corporation is a public utility holding company serving approximately one million electric and over 400,000 natural gas customers in Iowa, Illinois, Minnesota and Wisconsin. LNT topped the Street's earnings estimate over the past five quarters by an average margin of 45.2%. The company produced a double-digit earnings surprise in each of the five quarters. On Aug 3, LNT reported second-quarter profits of $46.1 million, or 39 cents per share. The results crushed the consensus earnings estimate by 25.8%. Compared to the prior-year period, however, earnings were down a penny. Revenues declined slightly to $696.8 million, from $699.8 million in the second quarter of 2005. Commenting on the second quarter, Chairman, President and CEO William D. Harvey stated, “We are once again pleased with the strong and more predictable financial results our ongoing businesses produced this past quarter. Over the past several years, we have made significant progress executing our planned divestitures and improving the financial strength of our company.” LNT announced that it has increased its earnings per share guidance for the full year of 2006 to between $2.25 and 2.45, compared to its prior outlook which projected between $2.15 and $2.35. The company listed a number of reasons for its revised forecast, including continuing economic development and sales growth in its utility service territories as well as continuing cost controls and operational efficiencies The Board of Directors authorized a share repurchase plan in which the company can buy back up to $200 million of its common stock by the end of 2007. Moreover, on Jul 14, the Board declared a quarterly cash dividend of 28.75 cents per common share of stock. Dividends on the company's common stock have been paid for 243 consecutive quarters since 1946. LNT is currently yielding 3.3%. The consensus estimate for 2006 currently resides at $2.35 and represents a 4.4% increase over the past 60 days. Profit forecasts for 2007 jumped 4.3% to $2.45 over the same period of time. Three analysts upped their estimates for this year while two did so for next year. LNT is currently trading at a valuation of 13.6x trailing 12-month earnings and at 15.0x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x trailing 12-month earnings and at 15.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.7, compared to 5.2 for the market. LNT's return on equity of 12% tops the industry average of 11%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home