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ALLETE (ALE) Beats on Q2 Earnings and Revenue Estimates
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ALLETE, Inc. (ALE - Free Report) reported second-quarter 2017 adjusted earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 57 cents by 26.3%. On a year-over-year basis earnings increased 44%.
Increased earnings in the second quarter can be attributed to higher net income at Minnesota Power resulting from the implementation of interim retail rates at the beginning of the year and higher kilowatt-hour sales due to increased sales to Minnesota Power's industrial customers. Further, the timing of the recognition of a conservation improvement program financial incentive following the approval Minnesota Public Utilities Commission provided more impetus.
Total Revenue
In second-quarter 2017, ALLETE’s total revenues of $353.3 million beat the Zacks Consensus Estimate of $318 million by 11.1%. Further, revenues were up 12.2% from $314.8 million in the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume increased 2.8% year over year to 3,558 million kilowatt-hours.
The company’s total operating expenses were $298.3 million, reflecting an increase of 9.4% year over year, primarily as a result of investments made in waste treatment and water safety applications.
Operating income in the reported quarter increased 30.3% year over year to $55 million.
Interest expenses decreased 4% year over year to $16.7 million.
Financial Update
ALLETE’s cash and cash equivalents, as of Jun 30, 2017 were $84.2 million, up from $27.5 million as of Dec 31, 2016.
Long-term debt as of Jun 30, 2017 was $ 1,401.4 million, higher than $1,370.4 million in the end of 2016.
WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.
FirstEnergy Corporation (FE - Free Report) reported second-quarter 2017 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate. Quarterly earnings were also up 8.9% year over year.
Xcel Energy Inc. (XEL - Free Report) recorded second-quarter 2017 operating earnings of 45 cents per share, beating the Zacks Consensus Estimate of 43 cents by 4.6%. Earnings were 15.4% higher than the year-ago quarter.
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ALLETE (ALE) Beats on Q2 Earnings and Revenue Estimates
ALLETE, Inc. (ALE - Free Report) reported second-quarter 2017 adjusted earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 57 cents by 26.3%. On a year-over-year basis earnings increased 44%.
Increased earnings in the second quarter can be attributed to higher net income at Minnesota Power resulting from the implementation of interim retail rates at the beginning of the year and higher kilowatt-hour sales due to increased sales to Minnesota Power's industrial customers. Further, the timing of the recognition of a conservation improvement program financial incentive following the approval Minnesota Public Utilities Commission provided more impetus.
Total Revenue
In second-quarter 2017, ALLETE’s total revenues of $353.3 million beat the Zacks Consensus Estimate of $318 million by 11.1%. Further, revenues were up 12.2% from $314.8 million in the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume increased 2.8% year over year to 3,558 million kilowatt-hours.
The company’s total operating expenses were $298.3 million, reflecting an increase of 9.4% year over year, primarily as a result of investments made in waste treatment and water safety applications.
Operating income in the reported quarter increased 30.3% year over year to $55 million.
Interest expenses decreased 4% year over year to $16.7 million.
Financial Update
ALLETE’s cash and cash equivalents, as of Jun 30, 2017 were $84.2 million, up from $27.5 million as of Dec 31, 2016.
Long-term debt as of Jun 30, 2017 was $ 1,401.4 million, higher than $1,370.4 million in the end of 2016.
Allete, Inc. Price, Consensus and EPS Surprise
Allete, Inc. Price, Consensus and EPS Surprise | Allete, Inc. Quote
Peer Releases
WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.
FirstEnergy Corporation (FE - Free Report) reported second-quarter 2017 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate. Quarterly earnings were also up 8.9% year over year.
Xcel Energy Inc. (XEL - Free Report) recorded second-quarter 2017 operating earnings of 45 cents per share, beating the Zacks Consensus Estimate of 43 cents by 4.6%. Earnings were 15.4% higher than the year-ago quarter.
Zacks Rank
ALLETE, Inc. carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>