Otter Tail Q3 2023 Earnings Report
Key Takeaways
Otter Tail Corporation reported a 9% increase in consolidated net income to $92 million, with diluted earnings per share increasing by 9% to $2.19. The company's performance was driven by strong earnings in the Manufacturing and Plastics segments, while the Electric segment remained flat. Increased 2023 diluted earnings per share guidance to a range of $6.76 to $6.96.
Consolidated operating revenues decreased 7% to $358 million.
Consolidated net income increased 9% to $92 million.
Diluted earnings per share increased 9% to $2.19 per share.
Increased 2023 diluted earnings per share guidance to a range of $6.76 to $6.96.
Otter Tail
Otter Tail
Otter Tail Revenue by Segment
Forward Guidance
The company is increasing its 2023 diluted earnings per share range to $6.76 to $6.96.
Positive Outlook
- Strength of third quarter earnings as sales volumes, margin improvement and tax credits drove earnings growth at BTD.
- Backlog for the manufacturing companies as of September 30, 2023 was approximately $107 million.
- Continued strength in our product sales prices and related margins.
- Increased sales volume expectations as distributor inventory destocking is generally complete and demand has rebounded in advance of the seasonal decline anticipated in the latter part of the fourth quarter.
- The results in the third quarter of 2023 were better than expected due to higher balances of invested cash, higher yields on our cash investments and lower employee healthcare costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income