ALLETE, Inc. ALE reported second-quarter 2015 earnings of 48 cents per share, lagging the Zacks Consensus Estimate of 51 cents by 5.9%. However, on a year-over-year basis, earnings improved 4.3%. An increase in common shares outstanding resulted in earnings dilution of 7 cents per share compared with the year-ago period.
The company’s GAAP earnings were 46 cents per share in the quarter compared with 40 cents a year ago. The variance between GAAP and adjusted earnings was due to a 2-cent acquisition fee impact.
Total Revenues
In the second quarter, ALLETE posted total revenues of $323.3 million, surpassing the Zacks Consensus Estimate of $303.0 million by 6.7% and year-ago revenues by 24%.
Quarterly Operational Highlights
ALLETE’s total electricity sales volume climbed 7.2% year over year to 3,463 kilowatt-hours.
The company’s total operating expenses were $283.8 million, up 22.1% year over year due to higher operating and maintenance expenses and cost of sales.
Operating income in the reported quarter was up 40.1% year over year to $39.5 million.
In the quarter under review, interest expenses surged 20.0% year over year to $16.2 million.
Financial Update
ALLETE’s cash and cash equivalents as of Jun 30, 2015 were $60.6 million compared with $145.8 million as of Dec 31, 2014.
Long-term debt as of Jun 30, 2015 was $1,272.4 million, almost in line with $1,272.8 million at year-end 2014.
In the first half of 2015, the company’s cash from operating activities was $182.3 million compared with $126.1 million in the year-ago quarter.
Guidance
For 2015, ALLETE raised its earnings per guidance to the range of $3.20 to $3.40 from 3.00 to $3.20 per share earlier.
Other Utility Releases
DTE Energy Company DTE reported second-quarter 2015 operating earnings per share of 76 cents, lagging the Zacks Consensus Estimate of 84 cents by 9.5%
PG&E Corporation’s PCG adjusted operating earnings per share of 91 cents in the second quarter of 2015 outpaced the Zacks Consensus Estimate of 77 cents by 18.2%
American Electric Power Co., Inc. AEP reported second-quarter 2015 operating earnings of 88 cents per share, beating the Zacks Consensus Estimate of 81 cents by 8.6%.
Zacks Rank
ALLETE currently holds a Zacks Rank #3 (Hold).
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