KeyCorp analysts raise Q4 2024 EPS estimates for Otter Tail Co. after equities research

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Otter Tail ($NASDAQ:OTTR) Co. is a diversified energy and infrastructure company, operating primarily in the Upper Midwest region of the United States. It also has investments in manufacturing, construction, and plastics businesses. The company’s stock, listed on the Nasdaq under the ticker symbol OTTR, has been gaining traction in recent years due to its solid financial performance and growth potential. The recent report from KeyCorp’s equities research analysts has further boosted investor confidence in Otter Tail Co. According to the report, the analysts have raised their EPS estimates for the company for the fourth quarter of 2024. This means that they expect Otter Tail Co. to generate higher earnings per share in that period compared to their previous estimates. This is a positive sign for shareholders as it indicates that the company’s operations are expected to be more profitable in the future. One of the key factors that influenced this upward revision in EPS estimates is the strong financial performance of Otter Tail Co. in recent quarters. The company has consistently reported solid earnings growth, driven by its diverse portfolio of businesses and strategic investments. This growth was primarily attributed to higher revenues from its electric and gas segments, as well as improved contributions from its manufacturing and construction businesses. Furthermore, Otter Tail Co. has been actively pursuing growth opportunities through strategic investments and acquisitions.

Additionally, Otter Tail Co. has been investing in renewable energy projects, such as wind and solar, to diversify its energy portfolio and capitalize on the growing demand for clean energy. The KeyCorp analysts’ report also highlights the positive outlook for Otter Tail Co. in the coming years. With the company’s strong financial position and growth initiatives, it is well-positioned to capitalize on the growing demand for energy and infrastructure services in its region. This, coupled with the expected economic recovery and increased infrastructure spending under the Biden administration, bodes well for Otter Tail Co.’s future earnings potential. With its diverse portfolio of businesses, strategic investments, and positive market outlook, Otter Tail Co. is set to continue its upward trajectory and create value for its shareholders in the long run.

Earnings

In this report, Otter Tail Co. reported a total revenue of 333.23M USD and a net income of 51.62M USD. Compared to the previous year, Otter Tail Co. saw a significant increase in both total revenue and net income. Specifically, there was a 10.6% increase in total revenue and a 22.9% increase in net income. This indicates strong growth for the company and reflects positively on its financial performance. In addition to the impressive numbers from the most recent quarter, Otter Tail Co. has also shown steady growth over the past three years. In fact, its total revenue has increased from 314.31M USD to 333.23M USD during this time period.

This consistent growth is a promising sign for the company’s future and is likely one of the factors that led to the raised EPS estimates by KeyCorp analysts. Overall, it seems that Otter Tail Co. is in a strong financial position and is expected to continue its growth trajectory in the coming years. The raised EPS estimates by KeyCorp analysts are a testament to this and demonstrate confidence in the company’s potential. Investors and stakeholders can look forward to seeing how Otter Tail Co. will continue to perform in the future.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Otter Tail. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Otter Tail. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Otter Tail. More…

Key Ratios Snapshot

Some of the financial key ratios for Otter Tail are shown below. More…

Price History

This news had a positive impact on OTTER TAIL stock, which opened at $78.97 and closed at $78.88, up by 0.88% from the previous closing price of $78.19. This increase in stock price is indicative of the market’s optimistic response to the revised EPS estimates. This includes studying various market trends and evaluating the company’s competitive position within the industry. As a result, they have determined that OTTER TAIL is well-positioned to achieve higher earnings in the fourth quarter of 2024. The revised EPS estimates are a reflection of KeyCorp’s confidence in OTTER TAIL’s ability to deliver strong financial results in the future. This is a significant endorsement for the company and may result in increased investor interest and confidence in OTTER TAIL stock. The increased EPS projections also suggest that KeyCorp believes OTTER TAIL has a solid business strategy and is capable of executing it effectively to drive growth and profitability. In addition to raising EPS estimates, KeyCorp also likely analyzed other financial metrics such as revenue and cash flow to arrive at their forecast. These metrics, along with EPS, are key indicators of a company’s financial health and prospects for future growth. By increasing the EPS estimates, KeyCorp is essentially predicting that OTTER TAIL will generate higher profits in the fourth quarter of 2024, which could lead to potential dividend increases or share buybacks. It signifies that the company is on track to achieve solid financial performance and potentially deliver returns to its investors. As always, it is important for investors to conduct their own research and make informed decisions when considering investing in a company’s stock.

However, with the increased confidence from KeyCorp, OTTER TAIL may be worth keeping an eye on for potential investment opportunities. Live Quote…

Analysis

After conducting a thorough analysis of OTTER TAIL‘s financials, it is evident that this company has a strong financial health and is capable of withstanding any potential crisis. This can be seen through our Star Chart, which gives OTTER TAIL a high health score of 8/10 for its cash flows and debt management. In terms of revenue and earnings growth, OTTER TAIL can be classified as a ‘rhino’ company, which means it has achieved moderate growth in these areas. While it may not be the fastest growing company, it still has steady and sustainable growth that can provide stability for investors. For investors looking to invest in a company like OTTER TAIL, the strong performance in areas such as asset management, dividend distribution, growth potential, and profitability make it an attractive option. These factors indicate that the company is well-managed and has the potential to provide good returns for investors. Overall, OTTER TAIL is a solid choice for investors who are looking for a stable and reliable company with steady growth potential. Its strong financial health and performance in key areas make it a promising investment opportunity. More…

Peers

In the electric utility industry, there is intense competition between Otter Tail Corp and its competitors: NextEra Energy Inc, DTE Energy Co, Exelon Corp. These companies are all vying for market share in the electric utility industry.

– NextEra Energy Inc ($NYSE:NEE)

NextEra Energy Inc is a clean energy company with a market cap of 156.59B as of 2022. The company has a Return on Equity of 6.09%. NextEra Energy Inc is the world’s largest generator of renewable energy from the wind and sun. The company also owns Florida Power & Light Company, one of the nation’s largest electric utilities.

– DTE Energy Co ($NYSE:DTE)

DTE Energy Co is a publicly traded energy company headquartered in Detroit, Michigan. The company is involved in the generation, transmission, and distribution of electricity and natural gas. As of 2022, the company had a market capitalization of 21.77 billion dollars and a return on equity of 12.47%. The company is the largest provider of electricity and natural gas in Michigan, serving over 3 million customers.

– Exelon Corp ($NASDAQ:EXC)

Exelon Corp is a publicly traded company with a market capitalization of $36.95 billion as of 2022. The company has a return on equity of 11.0%. Exelon Corp is engaged in the generation, transmission, and distribution of electricity and natural gas. The company operates through four business segments: Exelon Generation, Exelon Utilities, Exelon Business Services, and Exelon Transmission.

Summary

KeyCorp analysts have increased their Q4 2024 EPS estimates for Otter Tail Co. This indicates that they have a positive outlook on the company’s future earnings potential. This could be a promising sign for investors who are considering investing in Otter Tail, as it suggests that the company may experience growth in the near future. However, it is important to conduct further research and analysis to fully understand the potential risks and rewards of investing in Otter Tail Co. as the market and economic conditions may change over time.