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Dec 31, 2023
Otter Tail Q4 2023 Earnings Report
Otter Tail Corporation announced record annual earnings and increased quarterly dividend.
Key Takeaways
Otter Tail Corporation reported a strong Q4 2023, with increased operating revenues and net income. The corporation's board of directors increased the quarterly common stock dividend to $0.4675 per share.
Consolidated operating revenues increased 4.3% to $314.3 million.
Net income increased 37.5% to $57.8 million.
Diluted earnings per share increased 37% to $1.37.
Plastics segment net income increased $14.9 million primarily due to a 59% increase in sales volumes.
Revenue by Segment
Forward Guidance
Otter Tail Corporation anticipates 2024 diluted earnings per share to be in the range of $5.13 to $5.43.
Positive Outlook
- Normal weather conditions in 2024.
- Returns generated from an increase in average rate base of 8.5% in 2024, compared to 2023.
- Interim revenue increase, which commenced January 1, 2024, resulting from the general rate case filed in North Dakota.
- Lower operating and maintenance expenses driven by lower anticipated employee benefit cost and discretionary spending.
- Higher sales volumes and favorable product mix, improved productivity and lower incentive costs at BTD, partially offset by continued cost pressures in the business.
Challenges Ahead
- Product pricing pressures and increased manufacturing cost at T.O. Plastics driving a decline in earnings in 2024.
- Anticipated margin compression resulting from a continued downward trend in product prices over the course of 2024.
- Increased depreciation expense resulting from our capital expenditures.
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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