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.
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’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.
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.
ALLETE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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