ALLETE Reports Mixed Results, GAAP EPS Misses by $0.20 but Revenue Beats by $188.9M
May 4, 2023
Trending News 🌧️
While the company’s GAAP EPS of $1.02 fell short of expectations by $0.20, their revenues of $564.9M exceeded projections by $188.9M. These figures demonstrate ALLETE ($NYSE:ALE)’s commitment to diversifying its income streams and expanding its operations. While the company’s GAAP EPS fell short of expectations, they are confident that they will be able to turn things around moving forward. ALLETE is making strategic investments in their businesses and exploring new markets, which should drive long-term growth and help them stay competitive in the future.
Market Price
ALLETE Inc. reported mixed results in their latest quarter and missed GAAP earnings per share estimates by $0.20.
However, the company’s revenue beat expectations by $188.9M. Following the announcement, ALLETE stock opened at $62.9 and closed at $62.6, representing a 0.5% increase from the previous closing price of $62.3. The stock’s performance was mixed compared to its peers as investors weigh the positives and negatives from the report. Overall, investors remain cautiously optimistic about ALLETE’s prospects going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allete. More…
| Total Revenues | Net Income | Net Margin |
| 1.57k | 189.3 | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allete. More…
| Operations | Investing | Financing |
| 221.3 | -384 | 155.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allete. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.85k | 3.5k | 47.06 |
Key Ratios Snapshot
Some of the financial key ratios for Allete are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.2% | -9.3% | 11.2% |
| FCF Margin | ROE | ROA |
| 0.1% | 4.1% | 1.6% |
Analysis
At GoodWhale, we are passionate about helping investors make informed decisions and have the tools to analyze ALLETE‘s financials. By running a Risk Rating analysis of ALLETE’s financials, we have determined that ALLETE is a medium risk investment in terms of both financial and business aspects. We have also detected 1 risk warning in the balance sheet which registered users can check out. Investing in ALLETE can be a good option for those looking for a moderate risk investment with potential for future growth. To get the most out of our services, we recommend registering with us to gain access to all of our features. More…
Peers
ALLETE Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of energy in the United States. The company operates through two segments, Regulated Operations and Non-regulated Operations. It generates electricity from coal, hydro, nuclear, natural gas, oil, biomass, and solar sources. The company supplies electricity to residential, commercial, industrial, and agricultural customers; and sells excess electricity on the wholesale market. ALLETE Inc. was founded in 1906 and is based in Duluth, Minnesota. ALLETE Inc.’s competitors include NiSource Inc., MGE Energy Inc., and Iberdrola SA.
– NiSource Inc ($NYSE:NI)
NiSource Inc is a Fortune 500 company that owns and operates electric and natural gas utilities in the United States. The company has a market cap of 9.94B as of 2022 and a Return on Equity of 10.43%. NiSource’s primary business is the distribution of electricity and natural gas to customers in Indiana, Maryland, Massachusetts, Ohio, Pennsylvania, and Kentucky. The company also owns and operates a regulated natural gas pipeline business in Canada.
– MGE Energy Inc ($NASDAQ:MGEE)
MGE Energy Inc is a public utility holding company, which engages in the generation, purchase, transmission, distribution, and sale of electricity. The company operates through the following segments: Regulated Electric Utility Operations and Nonregulated Energy Operations. It generates electricity through coal, nuclear, natural gas, oil, solar, biomass, landfill gas, and hydro resources. The company was founded in 1855 and is headquartered in Madison, WI.
– Iberdrola SA ($LTS:0HIT)
Iberdrola SA is a Spanish electric utility company based in Bilbao, Spain. It is the largest electricity provider in Spain and one of the largest in the world. The company has a market cap of 58.24B as of 2022 and a Return on Equity of 11.07%. Iberdrola SA is a leading provider of renewable energy in Europe and the Americas, and one of the world’s largest investors in wind power. The company operates in over 30 countries and serves over 60 million customers.
Summary
The company reported a GAAP earnings per share (EPS) of $1.02, which missed analyst estimates by $0.20. This strong revenue figure was driven mainly by higher electric sales due to an increase in customer base and favorable weather conditions. The company’s financials are being closely watched by investors interested in the utility sector. ALLETE remains a popular stock and is worth considering for investors looking for a solid dividend payer with good growth prospects.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
