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Sep 30, 2024
Otter Tail Q3 2024 Earnings Report
Otter Tail's Q3 2024 earnings were announced, with increased consolidated 2024 annual earnings guidance.
Key Takeaways
Otter Tail Corporation reported a decrease in diluted earnings per share by 7% to $2.03 compared to Q3 2023, but increased its 2024 earnings guidance by $0.15 to $7.07 per share. The electric segment saw a 16% increase in earnings, while the plastics segment decreased by 8% and the manufacturing segment decreased by 71%.
2024 earnings guidance increased $0.15 to $7.07 per share.
Diluted earnings per share decreased 7% to $2.03 compared to Q3 2023.
Electric segment earnings increased 16% due to interim rates in North Dakota and a FERC ruling.
Plastics segment earnings decreased 8% due to declining PVC pipe sales prices, while manufacturing segment earnings decreased 71% due to lower sales volumes.
Otter Tail
Otter Tail
Otter Tail Revenue by Segment
Revenue by Segment
Electric Revenue
CapyFin.comManufacturing Revenue
CapyFin.comPlastics Revenue
CapyFin.com Forward Guidance
Otter Tail Corporation is increasing its 2024 diluted earnings per share range to $6.97 to $7.17. The earnings mix is expected to be approximately 30% from the Electric segment and 70% from the Manufacturing and Plastics segments, net of corporate costs.
Positive Outlook
- Maintaining Electric segment earnings guidance, expecting a 7% increase over 2023.
- Increasing Plastics segment earnings guidance based on better than expected financial results in Q3 2024.
- A slower decline in product sales prices than previously expected in the Plastics segment.
- Increased sales volumes in the fourth quarter of 2024 in the Plastics segment.
- Maintaining corporate cost guidance.
Challenges Ahead
- Decreasing Manufacturing segment earnings guidance due to anticipated lower sales volumes in the fourth quarter.
- Softer demand across most end markets affecting the Manufacturing segment.
- Manufacturers tightly managing inventories through year-end impacting the Manufacturing segment.
- Product pricing pressures within the metal fabrication business.
- Lower scrap revenues within the metal fabrication business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income