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ALLETE's (ALE) Q4 Earnings In Line With Estimates, Down Y/Y

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ALLETE, Inc. (ALE - Free Report) delivered fourth-quarter 2019 adjusted earnings of 92 cents per share, in-line with the Zacks Consensus Estimate. However, on a year-over-year basis, earnings declined 22%.

Total Revenues

In the reported quarter, total revenues amounted to $304.6 million, which missed the Zacks Consensus Estimate of $415 million by 26.6%. Also, revenues declined 32% from $448.3 million in the prior-year quarter.

In 2019, the company posted revenues of $1,240.5 million, down 17.2 % from $1,498.6 million in 2018.

Allete, Inc. Price, Consensus and EPS Surprise

 

Allete, Inc. Price, Consensus and EPS Surprise

Allete, Inc. price-consensus-eps-surprise-chart | Allete, Inc. Quote

 

Highlights of the Release

ALLETE’s total electricity sales volume slipped nearly 2.4% year over year to 3,580 million kilowatt-hours.

The company’s total operating expenses in the fourth quarter totaled $254.8 million, down 33.7% year over year.

Operating income in the quarter under review declined 22.2% to $49.8 million.  Interest expenses fell 1.8% to $16 million.

Financial Update

ALLETE’s cash and cash equivalents as of Dec 31, 2019 were $69.3 million, up from $69.1 million as of Dec 31, 2018.

Long-term debt as of Dec 31, 2019 was $1,400.9 million, down from $1,428.5 million as of Dec 31, 2018.

Guidance

The company’ management guided 2020 EPS in the range of $3.40-$3.70, whose mid-point of $3.55 is lower than the current Zacks Consensus Estimate for the period of $3.65. The company reaffirmed its long-term objective of achieving average annual earnings per share growth of 5-7%.

Zacks Rank

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

Xcel Energy (XEL - Free Report) posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings of 68 cents, which missed the Zacks Consensus Estimate of 69 cents.

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