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Otter Tail (OTTR) to Report Q2 Earnings: What's in Store?

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Otter Tail Corporation (OTTR - Free Report) is scheduled to release second-quarter 2022 results on Aug 1. This utility delivered an earnings surprise of 48.28% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Note

Otter Tail’s second-quarter performance is likely to have benefited from an improvement in commercial and industrial sales volume. Strong export demand and higher pipe prices is likely to drive Otter Tail’s Plastic segment earnings and boost earnings in the second quarter.

The rising interest rates and inflationary pressure might have impacted second-quarter earnings of the company.

Expectations

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at $1.27 per share and $333 million, respectively. Earnings per share and revenue estimates indicate year-over-year growth of 25.7% and 16.6%, respectively.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Otter Tail this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. This is not the case here, as you see below.

 

Otter Tail Corporation Price and EPS Surprise

Otter Tail Corporation Price and EPS Surprise

Otter Tail Corporation price-eps-surprise | Otter Tail Corporation Quote

Earnings ESP:  Otter Tail’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Otter Tail carries a Zacks Rank #1.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

American Electric Power (AEP - Free Report) is set to release second-quarter 2022 results on Jul 27. AEP has an Earnings ESP of +6.2% and a Zacks Rank #2.

The long-term (three to five years) earnings growth of American Electric Power is projected at 6.2%. The Zacks Consensus Estimate for 2022 earnings of AEP is $5.03 per share, which indicates year-over-year growth of 6.12%.

TransAlta Corporation (TAC - Free Report) set to release second-quarter 2022 results on Aug 5. TAC has an Earnings ESP of +11.11% and a Zacks Rank #2.

The Zacks Consensus Estimate for 2022 earnings of TransAlta Corporation is 64 cents per share, which indicates year-over-year growth of 178.3%.

Dominion Energy (D - Free Report) is set to release second-quarter 2022 results on Aug 8. D has an Earnings ESP of +6.1% and a Zacks Rank #3.

The long-term earnings growth of D is projected at 6.4%. The Zacks Consensus Estimate for 2022 earnings of Dominion Energy is $4.11 per share, which indicates year-over-year growth of 6.48%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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