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ALLETE (ALE) Q3 Earnings Miss Estimates, Revenues Down Y/Y

ByZacks Investment Research
Published 11/05/2019, 10:32 PM
Updated 07/09/2023, 06:31 AM

ALLETE, Inc. (NYSE:ALE) delivered third-quarter 2019 adjusted earnings of 60 cents, which lagged the Zacks Consensus Estimate of 67 cents by 10.4%. The bottom line improved 7.1% from prior-year quarter’s level.

Revenues

Total revenues in the quarter under review amounted to $288.3 million, which missed the Zacks Consensus Estimate of $331 million by 12.9%. The top line also declined 17.1% from $348 million recorded in the prior-year quarter.

Allete, Inc. Price, Consensus and EPS Surprise

Allete, Inc. price-consensus-eps-surprise-chart | Allete, Inc. Quote

Highlights of the Release

ALLETE’s Energy Infrastructure and Related Services business reported a net loss of $1.2 million in the third quarter.

ALLETE’s total electricity sales volume in the third quarter slipped nearly 7.3% year over year to 3,315 million kilowatt-hours due to decline in sales volume across all customer categories, except industrial customers.

The company’s total operating expenses amounted to $251.3 million, down 17.5% from $304.7 million in the year-ago quarter.

Operating income in the quarter under review was $37 million, down 14.5% from $43.3 million in the prior-year quarter.

Interest expenses contracted 8.5% to $16.1 million in the reported quarter.

Financial Update

ALLETE’s cash and cash equivalents as of Sep 30, 2019, totaled $100.3 million compared with $69.1 million as of Dec 31, 2018.

Long-term debt as of Sep 30 was $1,404.9 million, down from $1,428.5 million as of Dec 31, 2018.

Guidance

ALLETE now expects 2019 earnings per share at the low end of the guidance of $3.50 to $3.80 provided earlier.

Post 2019, the company predicts earnings growth over the next few years to be majorly driven by increasing clean energy investments at both regulated and non-regulated operations.

Zacks Rank

ALLETE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

DTE Energy Company (NYSE:DTE) reported third-quarter 2019 earnings of $1.91 per share, which missed the Zacks Consensus Estimate of $2 by 4.5%.

NorthWestern Corporation (NYSE:NWE) reported third-quarter 2019 earnings of 50 cents per share, which lagged the Zacks Consensus Estimate of 63 cents by 20.6%.

Public Service Enterprise Group (NYSE:PEG) reported third-quarter 2019 earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 3.16%.

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Public Service Enterprise Group Incorporated (PEG): Free Stock Analysis Report

NorthWestern Corporation (NWE): Free Stock Analysis Report

DTE Energy Company (DTE): Free Stock Analysis Report

Allete, Inc. (ALE): Free Stock Analysis Report

Original post

Zacks Investment Research

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