Otter Tail Corp (OTTR) Misses Q3 Views; Reaffirms
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Otter Tail Corp (NASDAQ: OTTR) reported Q3 EPS of $0.37, $0.08 worse than the analyst estimate of $0.45 (1 estimate). Revenue for the quarter came in at $197.2 million versus the consensus estimate of $204 million (1 estimate.
Otter Tail Corp sees FY2016 EPS of $1.50-$1.65, versus the consensus of $1.65.
“Otter Tail's employees worked hard to overcome a number of challenges this quarter, and we remain confident in our plans and in our full year expectations,” said Otter Tail Corporation President and CEO Chuck MacFarlane.
“Electric segment results were negatively impacted by $0.03 per diluted share due to recording an additional estimate of refunds for revenues collected under interim rates. This accrual reflects a modification in our original request and other expected outcomes in the rate case filed in February 2016. We expect the Minnesota Public Utilities Commission to issue its final order in March 2017.
“Milder summer weather resulted in a 19.9% decrease in cooling degree days. This negatively impacted diluted earnings per share by $0.01 quarter over quarter.
“The utility continues its solid operational performance. The two 345-kilovolt transmission projects that are under construction and part of Otter Tail Power Company's plan to grow during the next five years are on schedule and on budget. We are a 50% owner with other regional utilities in the Big Stone South-Brookings line, scheduled for completion in 2017, and the Big Stone South-Ellendale line, scheduled for completion in 2019. Otter Tail Power Company manages the Big Stone South-Ellendale project. The Midcontinent Independent System Operator recognizes both as multi-value projects.
“Our $858 million utility capital spending plan for 2016 through 2020 also includes a 248-megawatt simple-cycle natural gas combustion turbine, 200 megawatts of additional wind energy, and 30 megawatts of solar energy. We expect these and the transmission projects to drive a compounded annual growth rate of 8.0% in utility rate base through 2020, using 2014 as the base year.
“Quarter-over-quarter net income at BTD, our custom metal fabricator, was stable in the face of a recreational vehicle market that continues to soften and decreased demand for manufactured equipment used in oil and gas extraction and agriculture. Original equipment manufacturers in these markets are BTD’s customers. With expanded facilities and service offerings, we expect BTD to be in a good position to enhance earnings when market conditions improve.
“Our Plastics segment, PVC pipe companies Northern Pipe Products and Vinyltech, experienced a significant decrease in quarter over quarter revenues. Lower revenues resulted from declining sales prices, which were a response to known reductions in PVC resin costs. Overall volumes were stable, but gross margins declined primarily due to lower sales prices between the quarters. We expect these conditions to remain through the end of the year."
For earnings history and earnings-related data on Otter Tail Corp (OTTR) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sonoco (SON) Affirms FY16 Outlook; Guides FY17 EPS Below Views
- Kroger (KR) Reports In-Line Q3 EPS; Comps Miss Views; FY17 EPS Guidance Inline with Views
- Ascena Retail Group (ASNA) Misses Q1 EPS by 2c, Comps Fall 5%
Create E-mail Alert Related CategoriesEarnings, Guidance, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!