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Mar 31, 2024
Otter Tail Q1 2024 Earnings Report
Announced first quarter earnings and increased 2024 annual earnings guidance.
Key Takeaways
Otter Tail Corporation reported strong first quarter results, with diluted earnings per share increasing by 19% to $1.77 compared to the first quarter of 2023. The company has increased its 2024 earnings guidance, driven by stronger than expected performance in the Plastics segment.
Diluted earnings per share increased 19% to $1.77 compared to Q1 2023.
2024 earnings guidance increased 21% to $6.38 per share at the midpoint.
Plastics segment earnings increased 39% due to higher sales volumes.
Electric segment earnings decreased modestly due to weather-related headwinds.
Revenue by Segment
Forward Guidance
Otter Tail Corporation increased its 2024 diluted earnings per share guidance to a range of $6.23 to $6.53, primarily due to stronger than expected Plastics segment performance.
Positive Outlook
- Continued strength in product sales prices in the Plastics segment.
- Increased sales volumes in the Plastics segment due to stronger end market demand and distributor rebuilding of inventories.
- Electric segment earnings expected to increase 7% over 2023.
- Maintaining corporate cost guidance.
- Effective management of construction of expansion project in Arizona.
Challenges Ahead
- Anticipated lower sales volumes within certain end markets in the Manufacturing segment.
- Declining operating margins in the Manufacturing segment due to lower production and sales volumes.
- Reduced research and development tax credits from a reduction in associated cost in the Manufacturing segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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