Financial Performance - In 2024, Otter Tail Corporation achieved a net income of $301.7 million, or $7.17 per diluted share, representing a 3% increase from $294.2 million, or $7.00 per diluted share, in 2023[208]. - Net income for 2024 increased to $301,662, up 2.5% from $294,191 in 2023[322]. - Basic earnings per share rose to $7.22 in 2024, compared to $7.06 in 2023, reflecting a 2.3% increase[322]. - Total operating revenues for 2024 were $1,330,548, a decrease of 1.3% from $1,349,166 in 2023[322]. - Operating income for 2024 was $380,250, a slight increase from $377,919 in 2023[322]. - Total shareholders' equity rose to $1,668,499 in 2024, an increase of 15.6% from $1,443,006 in 2023[320]. Segment Performance - The Electric segment reported an 8% earnings growth in 2024, increasing from $84.4 million in 2023 to $91.0 million, driven by higher retail revenue from an interim rate increase in North Dakota[209]. - The Manufacturing segment experienced a 36% decline in earnings, dropping from $21.5 million in 2023 to $13.7 million in 2024, primarily due to lower sales volumes and decreased gross profit margins[210]. - The Plastics segment's earnings grew by 7%, from $187.7 million in 2023 to $200.7 million in 2024, attributed to increased sales volumes despite a decrease in gross profit margins[211]. - Net income for the Electric segment in 2024 was $90,963,000, an increase of 7.3% from $84,424,000 in 2023[389]. - Net income for the Manufacturing segment in 2024 was $13,681,000, a decrease of 36.5% from $21,454,000 in 2023[391]. - Net income for the Plastics segment in 2024 was $200,747,000, an increase of 6.5% from $187,748,000 in 2023[392]. Revenue and Expenses - Operating revenues decreased by $18.6 million in 2024, with the Electric segment's revenues down by 1% and the Manufacturing segment's revenues down by 15%[222]. - Operating expenses decreased by $20.9 million in 2024, mainly due to lower purchased power costs in the Electric segment[223]. - Selling, General, and Administrative Expenses in Corporate increased by $12.4 million, or 102.9%, primarily due to increased insurance expenses[239]. - Total operating revenue for the company in 2024 was $1,330,548,000, a decrease of 8.9% from $1,349,166,000 in 2023[399]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $452.7 million for 2024, an increase of $48.2 million compared to $404.5 million in 2023[252]. - Net cash used in investing activities rose to $411.4 million in 2024, up by $122.1 million from $289.3 million in 2023, primarily due to increased capital expenditures[255]. - The total available liquidity as of December 31, 2024, was $606.3 million, compared to $479.8 million as of December 31, 2023[251]. - The company has $311.6 million of available liquidity under credit agreements as of December 31, 2024[250]. Capital Expenditures and Investments - Capital expenditures for the Electric segment in 2024 were $301 million, with anticipated total capital expenditures of $1.426 billion from 2025 to 2029[259]. - Capital expenditures increased to $358,650,000 in 2024, compared to $287,134,000 in 2023, reflecting a 25% rise[325]. - The company made a $50.1 million investment in U.S. treasuries in April 2024, maturing in September 2026[401]. Debt and Interest - Interest expense increased by $4.1 million in 2024 due to the issuance of an additional $120.0 million of long-term debt[224]. - As of December 31, 2024, OTP had $947 million of principal outstanding under long-term debt arrangements[270]. - OTP's interest-bearing debt to total capitalization ratio was 0.47 to 1.00 as of December 31, 2024, with an interest and dividend coverage ratio of 3.34 to 1.00[272]. - The weighted-average interest rate on outstanding borrowings was 5.61% as of December 31, 2024[267]. Regulatory and Taxation - The effective tax rate improved to 17.8% in 2024 from 19.1% in 2023, resulting in a $4.1 million decrease in income tax expense[225]. - OTP requested a net increase in annual revenue of $17.4 million, or 8.4%, in its North Dakota rate case filing[242]. - The NDPSC approved a revenue requirement of $225.6 million, with a net increase of $13.1 million, or 6.18%, based on the settlement agreement[243]. Goodwill and Impairment - The company changed its annual goodwill impairment test date to October 1st in 2024 to better align with year-end financial reporting[289]. - No goodwill impairment was identified in the fourth quarter of 2024, with estimated fair values substantially exceeding carrying values[294]. Other Financial Metrics - Total assets increased to $3,652,082 in 2024, up 12.6% from $3,242,568 in 2023[320]. - Total current liabilities remained stable at $309,790 in 2024, slightly up from $309,757 in 2023[320]. - Long-term debt increased to $943,734 in 2024, up 14.5% from $824,059 in 2023[320]. - Regulatory assets decreased from $16,127 in 2023 to $9,962 in 2024, a decline of 38.5%[320]. - Regulatory liabilities increased from $276,547 in 2023 to $288,928 in 2024, reflecting a growth of 4.9%[320].

Earnings Conference Call Q4 2024 Forward Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "opportunity," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "would ...

Financial Performance - Otter Tail Corporation achieved record annual diluted earnings per share of $7.17 in 2024, up from $6.88 in 2023[2] - The Electric segment generated net income of $90.96 million, a 7.7% increase from $84.42 million in 2023, despite a 0.7% decrease in operating revenues[11] - The Plastics segment reported record earnings of $201 million, driven by a 27% increase in sales volumes, although sales prices decreased by 12% compared to the previous year[17] - The Manufacturing segment experienced a 14.9% decline in operating revenues to $342.59 million, with net income dropping 36.2% to $13.68 million due to a 15% decrease in sales volumes[15] - Operating revenues for the twelve months ended December 2024 are reported at $1.331 billion, a slight decrease from $1.349 billion in 2023[33] - Net income for the twelve months ended December 2024 is $301.662 million, compared to $294.191 million in 2023, indicating a year-over-year increase[33] - Operating income for the three months ended December 2024 is $66.824 million, down from $70.080 million in the same period of 2023[33] - Total operating revenues for the twelve months ended December 2024 were $1,330,548, a decrease of 1.3% from $1,349,166 in 2023[36] - Net income for the twelve months ended December 2024 was $301,662, an increase of 2.5% compared to $294,191 in 2023[36] Cash Flow and Liquidity - Consolidated cash provided by operating activities reached a record $452.7 million in 2024, up from $404.5 million in 2023[8] - The total available liquidity as of December 31, 2024, was $606.3 million, comprising $311.6 million in credit facilities and $294.7 million in cash[9] - Cash and cash equivalents were reported at $294,651,000 in 2024, up from $230,373,000 in 2023, indicating an increase of about 27.9%[34] - Net cash provided by operating activities for the twelve months ended December 2024 was $452,731, compared to $404,499 in 2023[35] - The company reported a net change in cash and cash equivalents of $64,278 for the twelve months ended December 2024[35] Capital Expenditures and Investments - Capital expenditures for 2024 totaled $358.7 million, primarily focused on the Electric segment, with a revised 5-year capital spending plan of $1.4 billion[8] - Total capital expenditures for 2024 are projected at $359 million, with a five-year total of $1.555 billion from 2025 to 2029[27] - The Electric segment's capital expenditures for 2024 are $301 million, contributing to a total of $1.426 billion over the next five years[27] - The Manufacturing and Plastics segments' capital expenditures are projected at $129 million over the next five years, focusing on equipment upgrades and capacity expansion[27] Assets and Liabilities - Total current assets increased to $630,041,000 in 2024 from $570,170,000 in 2023, representing an increase of approximately 10.5%[34] - Total noncurrent assets rose to $3,022,041,000 in 2024, up from $2,672,398,000 in 2023, indicating a growth of about 13.1%[34] - Total assets reached $3,652,082,000 in 2024, compared to $3,242,568,000 in 2023, marking an increase of approximately 12.6%[34] - Current liabilities totaled $309,790,000 in 2024, a decrease from $309,975,000 in 2023, reflecting a slight reduction[34] - Long-term debt stood at $943,734,000 in 2024, compared to $824,059,000 in 2023, showing an increase of about 14.5%[34] - Shareholders' equity increased to $2,091,402,000 in 2024 from $1,855,553,000 in 2023, representing a growth of approximately 12.7%[34] - Regulatory assets decreased to $9,962,000 in 2024 from $16,127,000 in 2023, a decline of approximately 38.5%[34] - Inventories slightly decreased to $148,885,000 in 2024 from $149,701,000 in 2023, reflecting a minor reduction[34] - Other noncurrent assets increased to $66,416,000 in 2024 from $51,377,000 in 2023, indicating a growth of approximately 29.3%[34] Future Outlook - Otter Tail Corporation updated its long-term earnings per share growth rate target to 6-8%, up from 5-7%[6] - The company anticipates 2025 diluted earnings per share to range between $5.68 and $6.08, reflecting a 7% expected growth in the Electric segment[25] - The Electric segment's return on equity was 19.3% for 2024, with a target of 13.8% to 14.6% for 2025[26] - The Electric segment's average rate base is expected to grow from $1.892 billion in 2024 to $2.909 billion by 2029, reflecting an annual growth rate of 9.0%[27] - The average rate base is anticipated to increase by 12% in 2025 compared to 2024, enhancing returns[28] - A planned maintenance outage at Coyote Station is scheduled for 2025, which may impact operational performance[28] - The company expects continued declines in product sales prices throughout 2025, following a retreat from 2022 highs[28] Segment Performance - Electric segment operating revenues for the three months ended December 2024 were $139,818, up 5.5% from $132,362 in 2023[36] - Manufacturing segment net income for the twelve months ended December 2024 was $13,681, down 36.6% from $21,454 in 2023[36] - Plastics segment operating revenues for the three months ended December 2024 were $96,661, an increase of 8.7% from $89,105 in 2023[36]

Core Viewpoint - Otter Tail (OTTR) has experienced a downtrend with a 5.3% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for OTTR is currently at 28.29, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. - RSI is a momentum oscillator that ranges from 0 to 100, with a reading below 30 typically indicating that a stock is oversold [2]. - Technical analysis suggests that stocks oscillate between overbought and oversold conditions, and the RSI can help identify potential reversal points [3]. Group 2: Earnings Estimates - There has been a strong consensus among sell-side analysts to raise earnings estimates for OTTR, resulting in a 1.7% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7]. - OTTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Otter Tail (OTTR) as a strong value stock based on its Zacks Rank and valuation metrics [2][3][6] Company Analysis - Otter Tail (OTTR) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the best value stocks currently available [3] - The company's price-to-book (P/B) ratio is 2.07, which is lower than the industry average of 2.41, suggesting it may be undervalued [4] - OTTR's P/B ratio has fluctuated between 1.91 and 2.86 over the past 52 weeks, with a median of 2.38 [4] - The price-to-cash flow (P/CF) ratio for OTTR is 8.31, which is also lower than the industry average of 10.81, further indicating potential undervaluation [5] - Over the past year, OTTR's P/CF has ranged from 7.68 to 10.60, with a median of 8.92 [5] - The combination of these metrics suggests that OTTR is likely undervalued and has a strong earnings outlook, making it an attractive investment opportunity [6]

Financial Performance - Operating Revenues decreased by $20.0 million to $338.0 million, a decline of 5.6% compared to the previous year[74]. - Operating Expenses decreased by $6.4 million to $230.5 million, primarily due to lower sales volumes in the Manufacturing segment and reduced fuel costs in the Electric segment[73]. - Interest Expense increased by $2.0 million to $11.2 million, attributed to the issuance of an additional $120.0 million of long-term debt[73]. - Net Income decreased by $6.5 million to $85.5 million, reflecting a decline of 7.1% year-over-year[74]. - Retail Revenues increased slightly by $0.3 million to $110.8 million, while Transmission Services Revenues rose by $1.5 million to $15.2 million[75]. - Wholesale Revenues decreased significantly by $1.6 million to $3.1 million, a drop of 33.9% due to reduced sales volumes[75]. - Operating Income for the Electric segment increased by 10.0% to $36.5 million, supported by favorable weather conditions[80]. - Operating Income for the Manufacturing segment decreased by 69.6% to $2.7 million, primarily due to a 13% decrease in sales volumes[82]. - Consolidated Operating Revenues for the nine months ended September 30, 2024, decreased by $7.4 million, or 0.7%, to $1,027,437, primarily due to decreased sales prices in the Plastics segment and decreased sales volumes in the Manufacturing segment[84]. - Operating Income increased by $5.6 million, or 1.8%, to $313,426, driven by lower operating expenses which decreased by $13.0 million, or 1.8%[84]. - Net Income for the period increased by $10.4 million, or 4.4%, to $246,812, with an effective tax rate decrease from 19.7% to 18.8%[84]. Segment Performance - Electric segment Total Operating Revenues decreased by $11.3 million, or 2.9%, to $384,696, impacted by a $15.4 million decrease in Purchased Power costs due to a 17% decrease in the price of purchased power[85][89]. - Retail Revenues in the Electric segment decreased by $9.0 million, or 2.6%, primarily due to a $14.8 million decrease in fuel recovery revenues and unfavorable weather conditions[87]. - Plastics segment Operating Revenues increased by $37.9 million, or 11.5%, to $366,780, driven by a 28% increase in sales volumes despite a 13% decrease in sales prices[91]. - Operating Income in the Plastics segment increased by $18.3 million, or 9.1%, to $219,136, reflecting strong demand and sales volume growth[91]. Expenses and Income - General and Administrative Expenses surged by $4.4 million to $5.4 million, a 463.1% increase, mainly due to higher insurance and employee benefit costs[83]. - General and Administrative Expenses increased by $5.441 million, or 68.0%, from $8.003 million in 2023 to $13.444 million in 2024[97]. - Operating Loss rose by $5.436 million, or 67.3%, from $8.081 million in 2023 to $13.517 million in 2024[97]. - Other Income increased by $3.0 million to $5.4 million, driven by increased investment income from the Plastics segment[73]. - Other Income increased by $6.7 million, primarily due to increased investment income from short-term cash equivalent investments and long-term marketable securities[84]. Cash Flow and Liquidity - Net Cash Provided by Operating Activities increased by $4.3 million, from $318.495 million in 2023 to $322.775 million in 2024[105]. - Net Cash Used in Investing Activities increased by $80.1 million, from $232.018 million in 2023 to $312.166 million in 2024[106]. - Net Cash Provided by Financing Activities increased by $55.3 million, from a net cash used of $16.259 million in 2023 to $39.038 million in 2024[107]. - Total available liquidity as of September 30, 2024, was $543.8 million, compared to $468.1 million as of September 30, 2023[102]. Capital Expenditures and Investments - The company plans to acquire a solar facility for $23.6 million, with closing expected in the second half of 2025[109]. - The company has a capital expenditure plan that includes investments in electric generation facilities and manufacturing facilities, subject to review based on various factors[108]. Debt and Compliance - The company is in compliance with all financial covenants as of September 30, 2024[102]. - OTP issued $120.0 million of senior unsecured notes in March 2024, consisting of $60.0 million of 5.48% notes due April 1, 2034, and $60.0 million of 5.77% notes due April 1, 2054, to repay short-term borrowings and fund capital expenditures[116]. - As of September 30, 2024, the company had $947.0 million of principal outstanding under long-term debt arrangements, with maturities ranging from 2026 to 2054[116]. - OTC's interest-bearing debt to total capitalization ratio was 0.38 to 1.00, and OTP's was 0.48 to 1.00 as of September 30, 2024, both within the required limits[118]. - OTC's interest and dividend coverage ratio was 10.4 to 1.00, while OTP's was 3.27 to 1.00 as of September 30, 2024, indicating strong coverage[118]. - The company remains in compliance with all financial covenants as of September 30, 2024, with no priority indebtedness outstanding for both OTC and OTP[118]. Regulatory and Market Information - The North Dakota Rate Case filed by OTP requests a net increase in annual revenue of $22.5 million, or 10.9%, to adjust for regulatory changes and cost recovery mechanisms[96]. - There have been no material changes to the company's critical accounting policies and estimates since the last Annual Report on Form 10-K[119]. - The company reported no material changes in market risk from the previous disclosures in the Annual Report on Form 10-K for the year ended December 31, 2023[120].

Q3 2024 Earnings Conference Call November 5, 2024 Forward-Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "wou ...

Press Release November 4, 2024 Otter Tail Corporation Announces Third Quarter Earnings, Increases Consolidated 2024 Annual Earnings Guidance FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2024. SUMMARY • Midpoint of 2024 earnings guidance increased $0.15 to $7.07 per share. • Diluted earnings per share decreased 7% to $2.03 per share compared to the third quarter of 2023. • Return on equity of 20% over the trailing twelve ...

Otter Tail (OTTR) came 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 year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.05%. A quarter ago, it was expected that this power company and manufacturer would post earnings of $1.76 per share when it actually produced earnings of $2.07, delivering a surprise of 17.61%.Over the last four quart ...

pedrosala Otter Tail Corporation (NASDAQ:OTTR) is a very unique electric utility that operates primarily in the U.S. states of Minnesota, North Dakota, and South Dakota. The company's operations do not include any of the major cities in this area, however, so its customer count is much lower than might be expected given the 5.74 million population of Minnesota. After all, a relatively large proportion of that state's population resides in the Twin Cities region, while the rest of the state remains rather ru ...