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ALLETE's (ALE) Q3 Earnings Beat Estimates, Revenues Miss
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ALLETE, Inc. (ALE - Free Report) reported third-quarter 2020 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 62 cents by 25.8%. Also, the bottom line increased 30% on a year-over-year basis. The improvement in earnings was due to higher rates and increased residential sales.
Total Revenues
For the reported quarter, total revenues of $294 million lagged the Zacks Consensus Estimate of $296 million by 0.6%. However, revenues improved 2.1% from $288 million in the prior-year quarter.
ALLETE’s total electricity sales volume was 3,137 million kilowatt hours, down 5.4% from 3,315 million kilowatt hours in the year-ago quarter. The residential load increased 8.1% year over year to 268 million kilowatt hours for the third quarter. This was offset by 18.9% fall in Commercial and Industrial customer load.
The company’s total operating expenses for the quarter totaled $252.3 million, down 0.4% year over year.
Operating income for the quarter under review increased 12.4% from the prior-year quarter to $41.6 million.
Interest expenses increased 1.2% year over year to $16.3 million.
Financial Update
ALLETE’s cash and cash equivalents as of Sep 30 were $79 million, up from $69.3 million on Dec 31, 2019.
Long-term debt as of Sep 30 was $1,608 million, up from $1,400.9 million on Dec 31, 2019.
Cash from operating activities for the nine months ended Sep 30, 2020 amounted to $243.9 million, up from $176.4 million in the prior-year comparable period.
Guidance
The company reaffirmed non-GAAP earnings in the band $3.25-$3.45 for 2020. This guided range excludes the Minnesota Power rate case settlement charge, net of tax.
WEC Energy Group (WEC - Free Report) recorded third-quarter 2020 earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 76 cents by 10.5%.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2020 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.
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ALLETE's (ALE) Q3 Earnings Beat Estimates, Revenues Miss
ALLETE, Inc. (ALE - Free Report) reported third-quarter 2020 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 62 cents by 25.8%. Also, the bottom line increased 30% on a year-over-year basis. The improvement in earnings was due to higher rates and increased residential sales.
Total Revenues
For the reported quarter, total revenues of $294 million lagged the Zacks Consensus Estimate of $296 million by 0.6%. However, revenues improved 2.1% from $288 million in the prior-year quarter.
Allete, Inc. Price, Consensus and EPS Surprise
Allete, Inc. price-consensus-eps-surprise-chart | Allete, Inc. Quote
Highlights of the Release
ALLETE’s total electricity sales volume was 3,137 million kilowatt hours, down 5.4% from 3,315 million kilowatt hours in the year-ago quarter. The residential load increased 8.1% year over year to 268 million kilowatt hours for the third quarter. This was offset by 18.9% fall in Commercial and Industrial customer load.
The company’s total operating expenses for the quarter totaled $252.3 million, down 0.4% year over year.
Operating income for the quarter under review increased 12.4% from the prior-year quarter to $41.6 million.
Interest expenses increased 1.2% year over year to $16.3 million.
Financial Update
ALLETE’s cash and cash equivalents as of Sep 30 were $79 million, up from $69.3 million on Dec 31, 2019.
Long-term debt as of Sep 30 was $1,608 million, up from $1,400.9 million on Dec 31, 2019.
Cash from operating activities for the nine months ended Sep 30, 2020 amounted to $243.9 million, up from $176.4 million in the prior-year comparable period.
Guidance
The company reaffirmed non-GAAP earnings in the band $3.25-$3.45 for 2020. This guided range excludes the Minnesota Power rate case settlement charge, net of tax.
Zacks Rank
ALLETE currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
WEC Energy Group (WEC - Free Report) recorded third-quarter 2020 earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 76 cents by 10.5%.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2020 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>