Back to top

Image: Bigstock

What's in the Offing for Otter Tail (OTTR) in Q3 Earnings?

Read MoreHide Full Article

Otter Tail Corporation (OTTR - Free Report) is scheduled to release third-quarter 2022 results on Oct 31. This utility delivered an earnings surprise of 61.4% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note

Otter Tail’s third-quarter performance is likely to have benefited from an improvement in retail sales volume to commercial and industrial customers.

Otter Tail’s third-quarter earnings are likely to have benefited from the strong demand and price of PVC pipes sold by its Plastic segment.

Expectations

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at $1.70 per share and $389.3 million, respectively. Earnings per share and revenue estimates indicate a year-over-year growth of 34.9% and 23.1%, respectively.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Otter Tail this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. This is not the case here, as you will see below.

Otter Tail Corporation Price and EPS Surprise

Otter Tail Corporation Price and EPS Surprise

Otter Tail Corporation price-eps-surprise | Otter Tail Corporation Quote

Earnings ESP: Otter Tail’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Otter Tail carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

WEC Energy Group (WEC - Free Report) is set to release third-quarter 2022 results on Nov 1. WEC has an Earnings ESP of +4.41% and a Zacks Rank #3.

The Zacks Consensus Estimate for 2022 earnings of WEC Energy is $4.39 per share, which indicates year-over-year growth of 6.81%.

Pinnacle West Capital Corp. (PNW - Free Report) is set to release third-quarter 2022 results on Nov 3. PNW has an Earnings ESP of +1.66% and a Zacks Rank #2.

The Zacks Consensus Estimate for 2022 earnings of Pinnacle West Capital is $4.01 per share, which indicates a year-over-year decline of 26.69%.

Ameren Corp. (AEE - Free Report) is set to release third-quarter 2022 results on Nov 4. AEE has an Earnings ESP of +1.40% and a Zacks Rank #3.

The long-term (three to five-year) earnings growth of Ameren is projected at 7.2%. The Zacks Consensus Estimate for 2022 earnings of AEE is $4.08 per share, which indicates year-over-year growth of 6.25%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in