ALLETE, Inc. (ALE - Free Report) delivered second-quarter 2020 adjusted earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 65 cents by 40%. Also, the bottom line plunged 40.9% on a year-over-year basis.
This underperformance can be attributed to lower net income at Minnesota Power, primarily due to fall in demand from the commercial and industrial (C&I) customers, decline in sales to municipal customers and other power suppliers due to the expiration of related contracts.
Total Revenues
In the reported quarter, total revenues of $243.2 million lagged the Zacks Consensus Estimate of $296 million by 17.8%. Also, revenues dropped 16.3% from $290.4 million in the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume was 2,604 million kilowatt-hours, down 18.8% from 3,206 million kilowatt-hours in the year-ago quarter. The residential load increased 6% year over year to 246 million kilowatt-hours in the second quarter. This was offset by a 28.6% fall in the C&I load.
The company’s total operating expenses in the second quarter totaled $230.5 million, down 9.3% year over year.
Operating income in the quarter under review decreased 64.9% to $12.7 million.
Interest expenses dipped 2.5% to $15.9 million.
Financial Update
ALLETE’s cash and cash equivalents as of Jun 30 were $25.7 million, down from $69.3 million as of Dec 31, 2019.
Long-term debt as of Jun 30 was $1,381 million, down from $1,400.9 million as of Dec 31, 2019.
Cash from operating activities for the six months ended June amounted to $144.5 million, up from $95.2 million in the prior-year’s comparable period.
Guidance
The company anticipates 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 #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, trumping the Zacks Consensus Estimate of $2.50 by 4.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
ALLETE, Inc. (ALE - Free Report) delivered second-quarter 2020 adjusted earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 65 cents by 40%. Also, the bottom line plunged 40.9% on a year-over-year basis.
This underperformance can be attributed to lower net income at Minnesota Power, primarily due to fall in demand from the commercial and industrial (C&I) customers, decline in sales to municipal customers and other power suppliers due to the expiration of related contracts.
Total Revenues
In the reported quarter, total revenues of $243.2 million lagged the Zacks Consensus Estimate of $296 million by 17.8%. Also, revenues dropped 16.3% from $290.4 million in the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume was 2,604 million kilowatt-hours, down 18.8% from 3,206 million kilowatt-hours in the year-ago quarter. The residential load increased 6% year over year to 246 million kilowatt-hours in the second quarter. This was offset by a 28.6% fall in the C&I load.
The company’s total operating expenses in the second quarter totaled $230.5 million, down 9.3% year over year.
Operating income in the quarter under review decreased 64.9% to $12.7 million.
Interest expenses dipped 2.5% to $15.9 million.
Financial Update
ALLETE’s cash and cash equivalents as of Jun 30 were $25.7 million, down from $69.3 million as of Dec 31, 2019.
Long-term debt as of Jun 30 was $1,381 million, down from $1,400.9 million as of Dec 31, 2019.
Cash from operating activities for the six months ended June amounted to $144.5 million, up from $95.2 million in the prior-year’s comparable period.
Guidance
The company anticipates 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 #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, trumping the Zacks Consensus Estimate of $2.50 by 4.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on NEE - FREE
Get the latest research report on FE - FREE
Get the latest research report on CMS - FREE
Get the latest research report on ALE - FREE