Plastic pipe maker Otter Tail's Q3 revenue misses estimates

Otter Tail

03/11/2025 23:10

Overview

Otter Tail Q3 revenue missed analyst expectations

Company increased 2025 earnings guidance midpoint by $0.21 to $6.47

Plastics segment performance exceeded expectations despite declining product pricing

Outlook

Otter Tail raises 2025 EPS guidance to $6.32-$6.62 from $6.06-$6.46

Company updates long-term EPS growth rate target to 7%-9%

Result Drivers

ELECTRIC SEGMENT - Increased operating revenues due to higher sales volumes and fuel recovery revenue, but net income decreased due to lower pension-related income and unfavorable weather

MANUFACTURING SEGMENT - Faced demand headwinds with decreased revenues, but improved production efficiencies led to higher net income

PLASTICS SEGMENT - Exceeded expectations despite declining product prices, benefiting from lower input costs and increased production capacity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$325.60 mln
$331.28 mln (2 Analysts)
Q3 EPS
$1.86
Q3 Dividend
$0.525


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electric utilities peer group is "buy"

Wall Street's median 12-month price target for Otter Tail Corp is $83.00, about 7% above its October 31 closing price of $77.22

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw1dy9M2a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)