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ALLETE (ALE) Earnings Meet Estimates in Q2, Revenues Miss
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ALLETE, Inc. (ALE - Free Report) delivered second-quarter 2019 adjusted earnings of 66 cents, in line with the Zacks Consensus Estimate. The bottom line increased 8.2% from prior-year quarter’s level.
Revenues
Total revenues in the quarter under review amounted to $290.4 million, which missed the Zacks Consensus Estimate of $349 million by 16.8%. The top line also declined 15.6% from $344.1 million registered in the prior-year quarter.
Highlights of the Release
In June, ALLETE Clean Energy announced a long-term power sales agreement — Diamond Spring — with Smithfield, Walmart (WMT - Free Report) and Starbucks (SBUX - Free Report) that includes more than 300 MW capacity.
ALLETE’s total electricity sales volume in the second quarter slipped nearly 9.8% year over year to 3,206 million kilowatt-hours due to decline in sales volume in all customer categories.
The company’s total operating expenses amounted to $254.2 million, down 17.4% from $307.6 million in the year-ago quarter.
Operating income in the quarter under review was $36.2 million, down from $36.5 million in the prior-year quarter. Interest expenses fell 4.7% to $16.3 million.
American Electric Power Co., Inc (AEP - Free Report) reported second-quarter 2019 adjusted earnings per share of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.
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ALLETE (ALE) Earnings Meet Estimates in Q2, Revenues Miss
ALLETE, Inc. (ALE - Free Report) delivered second-quarter 2019 adjusted earnings of 66 cents, in line with the Zacks Consensus Estimate. The bottom line increased 8.2% from prior-year quarter’s level.
Revenues
Total revenues in the quarter under review amounted to $290.4 million, which missed the Zacks Consensus Estimate of $349 million by 16.8%. The top line also declined 15.6% from $344.1 million registered in the prior-year quarter.
Highlights of the Release
In June, ALLETE Clean Energy announced a long-term power sales agreement — Diamond Spring — with Smithfield, Walmart (WMT - Free Report) and Starbucks (SBUX - Free Report) that includes more than 300 MW capacity.
ALLETE’s total electricity sales volume in the second quarter slipped nearly 9.8% year over year to 3,206 million kilowatt-hours due to decline in sales volume in all customer categories.
The company’s total operating expenses amounted to $254.2 million, down 17.4% from $307.6 million in the year-ago quarter.
Operating income in the quarter under review was $36.2 million, down from $36.5 million in the prior-year quarter. Interest expenses fell 4.7% to $16.3 million.
Allete, Inc. Price, Consensus and EPS Surprise
Allete, Inc. price-consensus-eps-surprise-chart | Allete, Inc. Quote
Financial Update
ALLETE’s cash and cash equivalents as of Jun 30, 2019, were $203.1 million compared with $69.1 million as of Dec 31, 2018.
Long-term debt as of Jun 30 was $1,505.9 million, up from $1,428.5 million as of Dec 31, 2018.
Guidance
Due to lower-than-expected wind resources, the company expects 2019 earnings in the lower half of the guidance range of $3.50-$3.80 per share.
Moreover, the company expects to drive 5-7% average annual growth over the next 5 years.
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.
Utility Release
American Electric Power Co., Inc (AEP - Free Report) reported second-quarter 2019 adjusted earnings per share of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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