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ALLETE (ALE) Q4 Earnings Top Estimates, Revenues Disappoint

ALLETE, Inc.ALE reported fourth-quarter 2016 adjusted earnings of 89 cents per share, surpassing the Zacks Consensus Estimate of 73 cents by 21.9%. On a year-over-year basis earnings rose 140.5%.

Full-year 2016 earnings came in at $3.14 per share, on par with the Zacks Consensus Estimate. Yearly earnings grew 7.5% year over year.

Total Revenue

In the fourth quarter of 2016, ALLETE's total revenues of $341.5 million lagged the Zacks Consensus Estimate of $375 million by 8.9%. Further, revenues were down 10.3% from $380.6 million reported in the prior-year quarter.

Full-year 2016 revenues came in at $1,339.7 million, marginally missing the Zacks Consensus Estimate of $1,350 million. Revenues, however, declined 9.9% from the year-ago quarter.

Highlights of the Release

ALLETE's total electricity sales volume declined 6.7% year over year to 3,419 million kilowatt-hours.

The company's total operating expenses were $280.4 million, down 20.1% year over year due to lower cost of sales.

Operating income in the reported quarter was up 106.4% year over year to $61.1 million.

Interest expenses increased 8.8% year over year to $17.3 million.

Allete, Inc. Price, Consensus and EPS Surprise

Allete, Inc. Price, Consensus and EPS Surprise | Allete, Inc. Quote

Financial Update

ALLETE's cash and cash equivalents, as of Dec 31, 2016 were $27.5 million, down from $97 million as of Dec 31, 2015.

Long-term debt as of Dec 31, 2016 was $1,370.4 million, lower than $1,556.7 million at 2015 end.

Peer Releases

American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

WEC Energy Group WEC reported fourth-quarter 2016 adjusted earnings of 61 cents per share, a penny below both the Zacks Consensus Estimate and the year-ago figure.

Zacks Rank

ALLETE currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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