) first quarter 2014 earnings of 83 cents per share were 2 cents
lower than the Zacks Consensus Estimate. However, earnings
were in line with the year-ago figure.
Earnings per share during the reported quarter were negatively
impacted by 6 cents due to a higher number of shares outstanding.
The company released its earnings before the market opened on May
7, 2014. Since then the company has gained a marginal 1.2% closing
at $50.67 per share yesterday. Systematic capital investment and
start-up of new projects make future earnings more visible. This
seems to have boosted investor confidence.
Total revenues in the first quarter of 2014 were $297 million, up
12.5% from the prior-year quarter and ahead of the. Zacks Consensus
Estimate by 3.5%.
The extreme weather in its service territories boosted demand for
electricity. Electricity sales increased 3% year over year.
Highlights of the Release
ALLETE reported an increase in total kilowatt-hours sold in the
reported quarter. The year-over-year increase was due to lower
demand from residential and commercial customers.
Total operating expenses in the reported quarter were $248.2
million, up 13.1% year over year, primarily due to higher fuel and
purchased power and operation and maintenance expenses.
Interest expenses in the reported quarter increased 4.1% year over
year to $12.8 million.
ALLETE's cash & cash equivalents as of Mar 31, 2014, were $44.6
million, down from $97.3 million as of Dec 31, 2013.
Long-term debt as of Mar 31, 2014, was $1.20 billion, higher than
$1.08 billion as of Dec 31, 2013.
ALLETEreiterated its 2014 earnings in the range of $2.75 to $2.95
per share. The company expects to invest nearly $640 million in
2014, much higher than $339.5 million invested in 2013.
) earnings came in at $2.29 per share in the first quarter, beating
the Zacks Consensus Estimate by 8.5%.
DTE Energy Company
) reported first quarter 2014 operating earnings per share of
$1.69, beating the Zacks Consensus Estimate of $1.41 by 19.8%.
American Electric Power Company Inc.
) reported first quarter 2014 operating earnings of $1.15 per
share, beating the Zacks Consensus Estimate of 91 cents by 26.4%.
ALLETE's regulated operations are doing well and the issue of new
equities is generating adequate funds to carry out development
A few projects are scheduled to come on-line this year and some are
scheduled to start over the course of the next few years. The
necessary funding for and completion of these projects hold the key
to future success.
ALLETE currently has a Zacks Rank #4 (Sell).
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