Otter Tail (OTTR) got here out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.97 per share. This compares to earnings of $2.19 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of three.05%. 1 / 4 in the past, it was anticipated that this energy firm and producer would put up earnings of $1.76 per share when it really produced earnings of $2.07, delivering a shock of 17.61%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
Otter Tail
The sustainability of the inventory’s speedy worth motion primarily based on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Otter Tail shares have misplaced about 8.1% because the starting of the yr versus the S&P 500’s acquire of 20.1%.
What’s Subsequent for Otter Tail?
Whereas Otter Tail has underperformed the market to this point this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable observe file of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions development for Otter Tail: favorable. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.20 on $312.3 million in revenues for the approaching quarter and $7.01 on $1.36 billion in revenues for the present fiscal yr.
Buyers needs to be aware of the truth that the outlook for the trade can have a fabric impression on the efficiency of the inventory as properly. When it comes to the Zacks Trade Rank, Utility – Electrical Energy is at the moment within the high 38% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One other inventory from the identical trade, NRG Power (NRG), has but to report outcomes for the quarter ended September 2024. The outcomes are anticipated to be launched on November 8.
This energy firm is anticipated to put up quarterly earnings of $1.71 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days.
NRG Power’s revenues are anticipated to be $5.43 billion, down 31.7% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
