ALLETE Earnings: Here’s Why Investors are Ambivalent Now

ALLETE, Inc. (NYSE:ALE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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ALLETE, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25.76% to $0.83 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Rose 9.92% to $263.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ALLETE, Inc. reported adjusted EPS income of $0.83 per share. By that measure, the company beat the mean analyst estimate of $0.75. It beat the average revenue estimate of $249.2 million.

Quoting Management: “Our first quarter financial results were consistent with our expectations,” said ALLETE Chairman, President and CEO Al Hodnik. “Electricity demand remains strong with our customers, and we continue to make progress in executing our multi-faceted, multi-year growth strategy.” Hodnik reaffirmed ALLETE’s 2013 earnings guidance of between $2.58 and $2.78 per share.”

Key Stats (on next page)…

Revenue increased 3.05% from $256 million in the previous quarter. EPS increased 10.67% from $0.75 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.44 to a profit $0.42. For the current year, the average estimate has moved up from a profit of $2.74 to a profit of $2.75 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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