ALLETE, Inc. ( ALE Quick Quote ALE - Free Report) reported first-quarter 2021 adjusted earnings of 99 cents per share, which lagged the Zacks Consensus Estimate of $1.11 by 10.8%. The bottom line also decreased 22.6% on a year-over-year basis. The year-over-year decline was due to higher operating expenses and a negative impact at ALLETE Clean Energy’s Diamond Spring wind energy facility related to an extreme winter storm event in the southern United States in February 2021. Total Revenues
For the reported quarter, total revenues of $339 million surpassed the Zacks Consensus Estimate of $314 million by 8%. Revenues also improved 8.7% from the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume was 3,879 million kilowatt hours (KWh), up 9.2% from 3,553 million KWh in the year-ago quarter. Total residential and municipal load decreased 3.7% year over year to 2,630 million KWh for the first quarter. This was offset by a 51.8% increase in Other Power supplies load.
The company’s total operating expenses for the quarter totaled $297.2 million, up 18.2% year over year. Operating income for the quarter under review dropped 30.3% from the prior-year period to $42 million. Interest expenses increased 8.9% year over year to $17.1 million. It is constantly working to achieve 100% carbon free generation goal by 2050 from 2005 levels and aims to cut emissions by 80% by 2030 from 2005 levels. Financial Update
ALLETE’s cash and cash equivalents as of Mar 31, 2021 were $159 million, up from $44.3 million as of Dec 31, 2020.
Long-term debt as of Mar 31, 2021 was $1,652.4 million, up from $1,593.2 million on Dec 31, 2020. Cash from operating activities for first-quarter 2021 amounted to $88.5 million, up marginally from $88.2 million in the prior-year period. Guidance
The company reaffirmed its non-GAAP earnings per share guidance in the band $3.00-$3.30 for 2021.
ALLETE currently carries a Zacks Rank #5 (Strong Sell).
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