NASDAQ$OTTR

Otter Tail Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Announced first quarter earnings and increased 2024 annual earnings guidance.

Otter Tail Corporation reported strong first quarter results, with diluted earnings per share increasing by 19% to $1.77 compared to the first quarter of 2023. The company has increased its 2024 earnings guidance, driven by stronger than expected performance in the Plastics segment.

  • Diluted earnings per share increased 19% to $1.77 compared to Q1 2023.
  • 2024 earnings guidance increased 21% to $6.38 per share at the midpoint.
  • Plastics segment earnings increased 39% due to higher sales volumes.
  • Electric segment earnings decreased modestly due to weather-related headwinds.

Headline financials

Total Revenue

$347M

Previous: $339M+2.4%
EPS

$1.77

Previous: $1.49+18.8%
Capital Expenditures

-$78.4M

No prior period
Free Cash Flow

$74.3M

Previous: $62.5M+19.0%
Net Income

$74.3M

Previous: $62.5M+19.0%
Operating Income

$95M

Previous: $80.7M+17.7%
Gross Profit

$233M

Previous: $227M+2.6%
Cash & Equivalents

$238M

Previous: $104M+128.8%
Total Assets

$3.33B

Previous: $2.99B+11.3%
Stock-Based Comp

$5.51M

Previous: $5.27M+4.6%

Revenue & EPS history

Otter Tail · Revenue · Quarterly

$347M

Q1 2024+2.4%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Otter Tail · $358M total across 3 segments · Q3 2023

  • Electric
    $130M-8.7%
  • Plastics
    $127M-10.7%
  • Manufacturing
    $101M+1.9%

Forward guidance

Otter Tail Corporation increased its 2024 diluted earnings per share guidance to a range of $6.23 to $6.53, primarily due to stronger than expected Plastics segment performance.

Tailwinds

  • Continued strength in product sales prices in the Plastics segment.
  • Increased sales volumes in the Plastics segment due to stronger end market demand and distributor rebuilding of inventories.
  • Electric segment earnings expected to increase 7% over 2023.
  • Maintaining corporate cost guidance.
  • Effective management of construction of expansion project in Arizona.

Headwinds

  • Anticipated lower sales volumes within certain end markets in the Manufacturing segment.
  • Declining operating margins in the Manufacturing segment due to lower production and sales volumes.
  • Reduced research and development tax credits from a reduction in associated cost in the Manufacturing segment.
  • Weather related headwinds in the Electric segment.
  • Changing market conditions amid mixed end market demand and normalizing customer inventory levels in the Manufacturing segment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.8%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+0.7%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+11.5%

Q2 2022

Best reaction

-10.6%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%-0.6%-2.3%
Q4 2025-1.7%-3.6%-0.7%
Q3 2025+5.4%+8.4%+6.0%
Q1 2025+1.1%+3.7%+2.2%
Q4 2024+6.1%+5.8%+7.0%
Q3 2024+4.4%+1.2%+2.4%
Q2 2024-3.9%-3.5%-14.1%
Q1 2024+2.8%+5.8%+2.6%
Q4 2023-9.1%-8.1%-16.5%
Q3 2023+9.3%+17.8%+5.9%
Q2 2023+9.8%+10.9%+3.6%
Q1 2023+7.2%+9.1%+3.1%
Q4 2022-4.4%+11.3%+7.9%
Q3 2022-9.3%-18.9%-13.2%
Q2 2022+11.5%+7.8%+7.5%
Q1 2022+5.1%+7.5%+14.6%
Q4 2021-0.0%+0.1%+3.3%
Q3 2021+1.6%+6.1%+5.5%
Q2 2021+5.1%+5.3%+9.2%
Q1 2021+1.9%+3.6%+2.3%
Q4 2020-2.3%-0.8%+7.3%
Q3 2020+10.8%+3.8%+6.5%
Q2 2020+1.4%+8.7%+1.4%
Q1 2020-5.0%+0.0%-3.7%
Q4 2019-0.6%+1.2%-26.4%
Q3 2019-10.6%-13.8%-14.0%
Q2 2019-2.6%-0.8%-2.8%
Q1 2019-3.2%-3.3%-1.6%
Q4 2018+0.5%-0.6%-2.4%
Q3 2018+5.6%+7.7%+6.6%
Q2 2018+0.4%+0.3%-0.1%
Q1 2018-1.0%-0.2%+1.9%
Q4 2017+0.8%+1.8%+2.9%
Q3 2017+1.6%-0.1%+4.2%
Q2 2017+3.7%+1.9%+4.0%
Q1 2017+0.0%-2.9%+1.1%
Q4 2016-1.9%-0.6%-6.0%
Q3 2016-1.7%+0.7%+9.2%
Q2 2016+0.7%+0.5%+3.2%
Q1 2016+4.2%
Q4 2015-1.8%
Q3 2015-3.7%
Q2 2015+8.0%
Q1 2015-5.0%
Q4 2014+0.9%
Q3 2014-0.6%
Q2 2014-2.1%
Q1 2014-0.6%
Q4 2013+10.1%
Q3 2013+2.9%
Q2 2013-6.3%
Q1 2013-0.3%
Q4 2012+0.7%
Q3 2012+3.6%
Q2 2012+0.2%
Q1 2012+2.8%
Q4 2011-1.8%
Q3 2011-1.1%
Q2 2011+6.7%
Q1 2010-2.3%
Q1 2011+0.5%
Q4 2010-1.3%
Q4 2008-1.3%
Q3 2010+0.6%
Q3 2009+0.6%
Q2 2010+1.4%
Q2 2009+1.4%
Q4 2009+1.4%

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