ALLETE, Inc. (NYSE:ALE) reported third-quarter 2017 adjusted earnings of $1.04 per share, which beat the Zacks Consensus Estimate of 95 cents by 9.5%. On a year-over-year basis, earnings increased 5%.
Total Revenues
In the quarter under review, the company’s total revenues of $362.5 million beat the Zacks Consensus Estimate of $358 million by 1.25%. Further, revenues were up 3.7% from $349.6 million in the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume inched up 0.6% year over year to 3,634 million kilowatt-hours.
The company’s total operating expenses were $293.5 million, reflecting a decline of 0.9% year over year. The decline in operating expenses was primarily due to lower cost of sales.
Operating income in the reported quarter increased 29.2% year over year to $69 million.
Interest expenses declined 11.2% year over year to $16.6 million.
Financial Update
ALLETE’s cash and cash equivalents, as on Sep 30, were $104.4 million, up from $27.5 million as of Dec 31, 2016.
Long-term debt as on Sep 30 was $ 1,444.6 million, higher than $1,370.4 million at the end of 2016.
Price, Consensus and EPS Surprise
Guidance
The company reaffirmed its 2017 earnings in the range of $3.15 to $3.40 per share.
Peer Releases
NextEra Energy, Inc. (NYSE:NEE) reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.
FirstEnergy Corporation (NYSE:FE) reported third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 86 cents by 12.8%.
Xcel Energy Inc. (NYSE:XEL) recorded third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%.
Zacks Rank
ALLETE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>
Xcel Energy Inc. (XEL): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
FirstEnergy Corporation (FE): Free Stock Analysis Report
Allete, Inc. (ALE): Free Stock Analysis Report
Original post
Zacks Investment Research