ALLETE Inc.
(
ALE
) is slated to release its fourth quarter 2012 financial results
before the market bell on Feb 15, 2013. In the last reported
quarter, the power generation, transmission and distribution
company posted a positive earnings surprise of 6.85%. Let's see
how things are shaping up at ALLETE prior to this
announcement.
Factors to Consider This Quarter
We believe the environmental modernization program at
Minnesota Power's Boswell Unit 4 could shove up cost thereby
creating margin pressure. Moreover, regulatory obligations will
continue to put stress on the company's growth trajectory.
However, we anticipate the commencement of operations at the
Magnetation facility, a partnership venture with Steel Dynamics
of Indiana and the Bison 2 and 3 renewable projects could to a
certain extent mitigate the aforementioned negatives.
Earnings Whispers
Our proven model does not conclusively show that ALLETE is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive earnings Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 74 cents per
share while the Zacks Consensus Estimate is higher at 75 cents,
resulting in -1.33% ESP.
Zacks Rank #3 (Hold)
: ALLETE's Zacks Rank #3 when combined with negative ESP makes
surprise prediction difficult. We caution investors against the
stock going into the earnings announcement, as a negative Zacks
ESP lowers the possibility of an earnings surprise.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that they have the right combination of
elements to post an earnings beat this quarter are as
follows:
NV Energy Inc.
(
NVE
) has earnings ESP of +14.29% and carries a Zacks Rank #3
(Hold).
PG&E Corporation
(
PCG
) has earnings ESP of +1.75% and carries a Zacks Rank #3
(Hold).
CenterPoint Energy Inc
. (
CNP
) has earnings ESP of +14.29% and carries a Zacks Rank #3
(Hold).
ALLETE INC (ALE): Free Stock Analysis Report
CENTERPOINT EGY (CNP): Free Stock Analysis
Report
NV ENERGY INC (NVE): Free Stock Analysis
Report
PG&E CORP (PCG): Free Stock Analysis
Report
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