ALLETE, Inc. (ALE - Free Report) reported second-quarter 2018 adjusted earnings of 61 cents per share, lagging both the Zacks Consensus Estimate and year-ago figure of 72 cents by 15.2%.
The year-over-year decline in earnings was due to higher operating and maintenance expenses, drop in transmission revenues and fall in overall sales resulting from lower wind resources compared with second-quarter 2017.
In the reported quarter, the company’s total revenues of $344.1 million surpassed the Zacks Consensus Estimate of $343 million by 0.32%. However, revenues declined 2.6% from $353.3 million recorded in the prior-year quarter.
Highlights of the Release
ALLETE’s total electricity sales volume declined marginally to 3,556 million kilowatt-hours (Kwh) from 3,558 million Kwh in second-quarter 2017.
The company’s total operating expenses totaled $307.6 million, reflecting a rise of 2.8% year over year.
Operating income in the quarter was down 32.4% to $36.5 million. Interest expenses increased 2.4% to $17.1 million.
ALLETE’s cash and cash equivalents as of Jun 30, 2018 were $121.9 million, down from $98.9 million on Dec 31, 2017.
Long-term debt as of Jun 30, 2018 was $1,462.2 million, down from $1,439.2 million on Dec 31, 2017.
The company reaffirmed its full-year 2018 earnings per share guidance in the range of $3.20-$3.50.
ALLETE currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
Edison International (EIX - Free Report) reported second-quarter 2018 earnings of 84 cents from continuing operations, beating the Zacks Consensus Estimate of 82 cents by 2.4%.
DTE Energy (DTE - Free Report) reported second-quarter 2018 operating EPS of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2018 adjusted EPS of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.
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