Loading...
•
Jun 30, 2023
Otter Tail Q2 2023 Earnings Report
Otter Tail's second quarter earnings decreased slightly due to lower revenues, but the company increased its full-year earnings guidance.
Key Takeaways
Otter Tail Corporation reported a decrease in consolidated operating revenues and net income for the second quarter of 2023, but increased its full-year diluted earnings per share guidance due to stronger than expected Plastics segment performance.
Consolidated operating revenues decreased 16% to $338 million.
Consolidated net income decreased 5% to $82 million.
Diluted earnings per share decreased 5% to $1.95 per share.
Increased 2023 diluted earnings per share guidance to a range of $5.70 to $6.00.
Revenue by Segment
Forward Guidance
The company increased its 2023 diluted earnings per share guidance to a range of $5.70 to $6.00, expecting the earnings mix to be approximately 35% from the Electric segment and 65% from the Manufacturing and Plastics segments.
Positive Outlook
- Continued strength in product sales prices and related margins in the Plastics segment.
- Slower rate of decline in sales prices and margins than previously expected.
- Better than expected results in the Corporate cost center due to gains on corporate-owned life insurance policies.
- Increased earnings on cash balance investments due to a higher balance of invested funds and a higher yield.
- Maintaining Manufacturing segment May 1, 2023 guidance.
Challenges Ahead
- Decrease in expected sales volumes over the remainder of 2023 in the Plastics segment.
- Lower second half earnings compared to the first half of 2023 as sales prices and margins are expected to decline modestly.
- Increase in operating and maintenance expenses in the Corporate cost center.
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
Loading earnings performance data...
Loading earnings reaction data...