Otter Tail Earnings: Everything You Must Know Now

Otter Tail Corporation (NASDAQ:OTTR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Otter Tail Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25% to $0.21 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Decreased 25.14% to $212.39 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Otter Tail Corporation reported adjusted EPS income of $0.21 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $220.4 million.

Quoting Management: “Overall, our 2013 second quarter results met our expectation for improved earnings over 2012,” said Otter Tail Corporation President and CEO Jim McIntyre. “The successful realignment of our portfolio has better positioned us for stronger execution within our remaining companies. The year-to-date results from continuing operations of $22.7 million in net income and $0.61 in diluted earnings per share compared to $17.1 million and $0.46 for 2012, a 33% improvement, further indicate progress toward a successful 2013.”

Key Stats (on next page)…

Revenue decreased 2.55% from $217.95 million in the previous quarter. EPS decreased 48.78% from $0.41 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 $0.41 to a profit $0.39. For the current year, the average estimate is a profit of $1.41, 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)