ALLETE Earnings: Here’s Why the Stock is Down Now

ALLETE, Inc. (NYSE:ALE) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.11%.

ALLETE, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.26% to $0.35 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 8.87% to $235.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ALLETE, Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company missed the mean analyst estimate of $0.4. It beat the average revenue estimate of $233.95 million.

Quoting Management: “We’ve found a way to meet the state of Minnesota’s renewable energy standard early and reduce costs at the same time,” said Al Hodnik, chairman, president and CEO of ALLETE. “Expanding Bison will add to our renewable energy supply, resulting in the lowest cost resource over time by capturing the benefits of the extended production tax credit and a competitive turbine market, while executing ALLETE’s growth strategy.”

Key Stats (on next page)…

Revenue decreased 10.69% from $263.8 million in the previous quarter. EPS decreased 57.83% from $0.83 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 $0.76 to a profit $0.75. For the current year, the average estimate is a profit of $2.75, which is the same with that ninety days ago.

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

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