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ALLETE (ALE) Q3 Earnings & Revenues Miss Estimates

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ALLETE, Inc. (ALE - Free Report) reported third-quarter 2018 adjusted earnings of 59 cents per share, missing the Zacks Consensus Estimate of 75 cents by 21.3%. Moreover, on a year-over-year basis, earnings were down by 33%.

Total Revenues

In the reported quarter, the company’s total revenues of $348 million lagged the Zacks Consensus Estimate of $366 million by 4.9%. Also, revenues declined 4% from $362.5 million in the prior-year quarter.

The revenues were hit primarily due to lower revenues from industrial electric utility customers as well as on weak revenues from water and gas services.

Allete, Inc. Price, Consensus and EPS Surprise

Highlights of the Release

ALLETE’s total electricity sales volume slipped nearly 1.5% year over year to 3,578 million kilowatt-hours.

The company’s total operating expenses totaled $304.7 million, reflecting a 3.5% rise year over year.

Operating income in the quarter under review dropped 36.3% to $43.3 million. Whereas interest expenses grew 6% to $17.6 million.

Financial Update

ALLETE’s cash and cash equivalents as of Sep 30, 2018 were $128 million, up from $98.9 million as of Dec 31, 2017.

Long-term debt as of Sep 30, 2018 was $1,461.7 million, up from $1,439.2 million as of Dec 31, 2017.

Guidance

The company reaffirmed its full-year 2018 earnings per share outlook in the range of $3.20-$3.50.

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.

Recent Utility Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

NextEra Energy (NEE - Free Report) posted third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

American Electric Power (AEP - Free Report) released third-quarter 2018 operating earnings per share of $1.26, surpassing the Zacks Consensus Estimate of $1.23 by 2.4%.

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