NASDAQ$OTTR

Otter Tail Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Otter Tail Corporation announced record quarterly earnings and increased its 2023 earnings guidance.

Otter Tail Corporation reported a 9% increase in consolidated net income to $92 million, with diluted earnings per share increasing by 9% to $2.19. The company's performance was driven by strong earnings in the Manufacturing and Plastics segments, while the Electric segment remained flat. Increased 2023 diluted earnings per share guidance to a range of $6.76 to $6.96.

  • Consolidated operating revenues decreased 7% to $358 million.
  • Consolidated net income increased 9% to $92 million.
  • Diluted earnings per share increased 9% to $2.19 per share.
  • Increased 2023 diluted earnings per share guidance to a range of $6.76 to $6.96.

Headline financials

Total Revenue

$358M

Previous: $384M-6.7%
EPS (adj)

$2.19

Previous: $2.01+9.0%
Capital Expenditures

-$80.2M

No prior period
Free Cash Flow

$92M

Previous: $84.2M+9.2%
Net Income

$92M

Previous: $84.2M+9.2%
Operating Income

$121M

Previous: $116M+4.3%
Gross Profit

$240M

Previous: $244M-1.9%
Cash & Equivalents

$189M

Previous: $73M+159.2%
Total Assets

$3.19B

Previous: $2.9B+10.0%
Stock-Based Comp

$491K

Previous: $630K-22.1%

Revenue & EPS history

Otter Tail · Revenue · Quarterly

$358M

Q3 2023-6.7%vs Q3 2022
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

The company is increasing its 2023 diluted earnings per share range to $6.76 to $6.96.

Tailwinds

  • Strength of third quarter earnings as sales volumes, margin improvement and tax credits drove earnings growth at BTD.
  • Backlog for the manufacturing companies as of September 30, 2023 was approximately $107 million.
  • Continued strength in our product sales prices and related margins.
  • Increased sales volume expectations as distributor inventory destocking is generally complete and demand has rebounded in advance of the seasonal decline anticipated in the latter part of the fourth quarter.
  • The results in the third quarter of 2023 were better than expected due to higher balances of invested cash, higher yields on our cash investments and lower employee healthcare costs.

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 Q3 2023

Historical avgQ3 2023

+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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