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ALLETE, Inc. (ALE - Free Report) reported fourth-quarter 2020 adjusted earnings of 90 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 25%. However, the bottom line decreased 2.2% on a year-over-year basis.
Total Revenues
For the reported quarter, total revenues of $320 million surpassed the Zacks Consensus Estimate of $305 million by 5.2%. Revenues also improved 5.2% from the prior-year quarter.
ALLETE’s total electricity sales volume was 3,961 million kilowatt hours (KWh), up 10.6% from 3,580 million KWh in the year-ago quarter. Total residential and municipal load decreased 10.1% year over year to 2,417 million KWh for the fourth quarter. This was offset by a 73.3% increase in Other Power supplies load.
The company’s total operating expenses for the quarter totaled $284 million, up 11.5% year over year.
Operating income for the quarter under review dropped 26.9% from the prior-year period to $49.8 million.
Interest expenses increased 10.6% year over year to $17.7 million.
The company is constantly working to achieve 100% carbon free generation goal by 2050 from 2005 levels. During 2020, it added South Peak and Diamond Spring wind assets to the generation portfolio, which in turn enhanced clean power generation capacity.
Financial Update
ALLETE’s cash and cash equivalents as of Dec 31, 2020 were $44.3 million, down from $69.3 million in the corresponding period of 2019.
Long-term debt as of Dec 31, 2020 was $1,593.2 million, up from $1,400.9 million in the comparable period of 2019.
Cash from operating activities for 2020 amounted to $299.8 million, up from $246.9 million in the prior-year period.
Guidance
The company initiated its non-GAAP earnings per share guidance in the band $3.00-$3.30 for 2021. This guided range excludes the impact of any possible acquisition or additional development projects. The preliminary earnings per share guidance for 2022 is estimated in the band of $$3.70-$4.00.
Eversource Energy (ES - Free Report) reported fourth-quarter 2020 operating earnings of 85 cents per share, which matched the Zacks Consensus Estimate.
WEC Energy Group (WEC - Free Report) reported fourth-quarter 2020 earnings per share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents by 2.7%.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >>
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ALLETE (ALE) Tops Q4 Earnings Estimates, Adds Clean Assets
ALLETE, Inc. (ALE - Free Report) reported fourth-quarter 2020 adjusted earnings of 90 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 25%. However, the bottom line decreased 2.2% on a year-over-year basis.
Total Revenues
For the reported quarter, total revenues of $320 million surpassed the Zacks Consensus Estimate of $305 million by 5.2%. Revenues also improved 5.2% from 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 3,961 million kilowatt hours (KWh), up 10.6% from 3,580 million KWh in the year-ago quarter. Total residential and municipal load decreased 10.1% year over year to 2,417 million KWh for the fourth quarter. This was offset by a 73.3% increase in Other Power supplies load.
The company’s total operating expenses for the quarter totaled $284 million, up 11.5% year over year.
Operating income for the quarter under review dropped 26.9% from the prior-year period to $49.8 million.
Interest expenses increased 10.6% year over year to $17.7 million.
The company is constantly working to achieve 100% carbon free generation goal by 2050 from 2005 levels. During 2020, it added South Peak and Diamond Spring wind assets to the generation portfolio, which in turn enhanced clean power generation capacity.
Financial Update
ALLETE’s cash and cash equivalents as of Dec 31, 2020 were $44.3 million, down from $69.3 million in the corresponding period of 2019.
Long-term debt as of Dec 31, 2020 was $1,593.2 million, up from $1,400.9 million in the comparable period of 2019.
Cash from operating activities for 2020 amounted to $299.8 million, up from $246.9 million in the prior-year period.
Guidance
The company initiated its non-GAAP earnings per share guidance in the band $3.00-$3.30 for 2021. This guided range excludes the impact of any possible acquisition or additional development projects. The preliminary earnings per share guidance for 2022 is estimated in the band of $$3.70-$4.00.
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 Releases
Eversource Energy (ES - Free Report) reported fourth-quarter 2020 operating earnings of 85 cents per share, which matched the Zacks Consensus Estimate.
WEC Energy Group (WEC - Free Report) reported fourth-quarter 2020 earnings per share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents by 2.7%.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>