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ALLETE (ALE) Stock Up on Q1 Earnings Beat, Revenues Rise

ALLETE, Inc. ALE reported first-quarter 2016 earnings of 93 cents per share, beating the Zacks Consensus Estimate of 91 cents by 2.2%. On a year-over-year basis, earnings increased 9.4%.

The improvement in earnings was driven by higher cost recovery rider revenue and lower operating and maintenance expenses. This was partially offset by a decrease in kWh sales due to lower industrial sales and impacts of warmer temperatures compared with the year-ago period.

Allete Inc. (ALE) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

The better-than-expected performance positively impacted ALLETE’s share prices, with the company gaining 0.12% yesterday to close at $57.08 per share.

Total Revenues

In the first quarter of 2016, ALLETE posted total revenues of $334 million, increasing 4.4% year over year.

Highlights of the release

ALLETE’s total electricity sales volume decreased 4.6% year over year to 3,640 kilowatt-hours.

The company’s total operating expenses were $267 million, up 1.3% year over year due to higher cost of sales.

Operating income in the reported quarter was up 18.5% year over year to $66.8 million.

In the quarter under review, interest expenses increased 11.9% year over year to $16.9 million.

Financial Update

ALLETE’s cash and cash equivalents as of Mar 31, 2016, were $97 million, on par with the Dec 31, 2015 level.

Long-term debt as of Mar 31, 2016, was $1,551.3 million, marginally lower than $1,568.7 million at 2015 end.

Other Utility Releases

American Electric Power Co., Inc. AEP reported first-quarter 2016 operating earnings of $1.02 per share, missing the Zacks Consensus Estimate of $1.06 by 3.8%.

DTE Energy Company DTE reported first-quarter 2016 operating earnings per share of $1.52, in line with the Zacks Consensus Estimate.

NiSource Inc. NI reported first-quarter 2016 operating earnings of 60 cents per share, surpassing the Zacks Consensus Estimate of 58 cents by 3.4%.

Zacks Rank

ALLETE currently holds a Zacks Rank #4 (Sell).

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AMER ELEC PWR (AEP): Free Stock Analysis Report
 
NISOURCE INC (NI): Free Stock Analysis Report
 
DTE ENERGY CO (DTE): Free Stock Analysis Report
 
ALLETE INC (ALE): Free Stock Analysis Report
 
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