ALLETE, Inc. 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.
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.
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.
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.
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 DTE reported third-quarter 2019 earnings of $1.91 per share, which missed the Zacks Consensus Estimate of $2 by 4.5%.
NorthWestern Corporation 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 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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