ALLETE's (ALE) Q3 Earnings Beat Estimates, Revenues Miss
ALLETE, Inc. ALE reported third-quarter 2020 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 62 cents by 25.8%. Also, the bottom line increased 30% on a year-over-year basis. The improvement in earnings was due to higher rates and increased residential sales.
Total Revenues
For the reported quarter, total revenues of $294 million lagged the Zacks Consensus Estimate of $296 million by 0.6%. However, revenues improved 2.1% from $288 million 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 total electricity sales volume was 3,137 million kilowatt hours, down 5.4% from 3,315 million kilowatt hours in the year-ago quarter. The residential load increased 8.1% year over year to 268 million kilowatt hours for the third quarter. This was offset by 18.9% fall in Commercial and Industrial customer load.
The company’s total operating expenses for the quarter totaled $252.3 million, down 0.4% year over year.
Operating income for the quarter under review increased 12.4% from the prior-year quarter to $41.6 million.
Interest expenses increased 1.2% year over year to $16.3 million.
Financial Update
ALLETE’s cash and cash equivalents as of Sep 30 were $79 million, up from $69.3 million on Dec 31, 2019.
Long-term debt as of Sep 30 was $1,608 million, up from $1,400.9 million on Dec 31, 2019.
Cash from operating activities for the nine months ended Sep 30, 2020 amounted to $243.9 million, up from $176.4 million in the prior-year comparable period.
Guidance
The company reaffirmed non-GAAP earnings in the band $3.25-$3.45 for 2020. This guided range excludes the Minnesota Power rate case settlement charge, net of tax.
Zacks Rank
ALLETE currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
WEC Energy Group WEC recorded third-quarter 2020 earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 76 cents by 10.5%.
Xcel Energy Inc. XEL posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.
CMS Energy Corporation CMS reported third-quarter 2020 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.
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