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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.
Revenue by Segment
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.
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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