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ALLETE (ALE) Q4 Earnings Top Estimates, Revenues Disappoint

Zacks

ALLETE, Inc. ALE reported fourth-quarter 2016 adjusted earnings of 89 cents per share, surpassing the Zacks Consensus Estimate of 73 cents by 21.9%. On a year-over-year basis earnings rose 140.5%.

Full-year 2016 earnings came in at $3.14 per share, on par with the Zacks Consensus Estimate. Yearly earnings grew 7.5% year over year.


Total Revenue

In the fourth quarter of 2016, ALLETE’s total revenues of $341.5 million lagged the Zacks Consensus Estimate of $375 million by 8.9%. Further, revenues were down 10.3% from $380.6 million reported in the prior-year quarter.

Full-year 2016 revenues came in at $1,339.7 million, marginally missing the Zacks Consensus Estimate of $1,350 million. Revenues, however, declined 9.9% from the year-ago quarter.

Highlights of the Release

ALLETE’s total electricity sales volume declined 6.7% year over year to 3,419 million kilowatt-hours.

The company’s total operating expenses were $280.4 million, down 20.1% year over year due to lower cost of sales.

Operating income in the reported quarter was up 106.4% year over year to $61.1 million.

Interest expenses increased 8.8% year over year to $17.3 million.

Allete, Inc. Price, Consensus and EPS Surprise

Allete, Inc. Price, Consensus and EPS Surprise | Allete, Inc. Quote

Financial Update

ALLETE’s cash and cash equivalents, as of Dec 31, 2016 were $27.5 million, down from $97 million as of Dec 31, 2015.

Long-term debt as of Dec 31, 2016 was $1,370.4 million, lower than $1,556.7 million at 2015 end.

Peer Releases

American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

WEC Energy Group WEC reported fourth-quarter 2016 adjusted earnings of 61 cents per share, a penny below both the Zacks Consensus Estimate and the year-ago figure.

Zacks Rank

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

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