Otter Tail Corp

Latest Results (07.08.2024):

Revenue Decrease

Otter Tail Corp's operating revenues for Q4 2023 were $314.3 million, a slight increase from $301.4 million in Q4 2022. However, for the full year 2023, operating revenues decreased by 8% to $1.3 billion compared to $1.46 billion in 2022. This decline was primarily due to decreased fuel recovery and wholesale revenues, as well as the impact of unfavorable weather conditions.

Net Income Increase

Otter Tail Corp reported a net income of $57.8 million for Q4 2023, up from $42.0 million in Q4 2022. For the entire year, net income increased by 4% to $294.2 million, compared to $284.2 million in 2022. This increase was driven by higher commercial and industrial sales and lower pension and other postretirement benefit costs.

Earnings Per Share

For Q4 2023, Otter Tail Corp's diluted earnings per share (EPS) were $1.37, compared to $1.00 in Q4 2022. For the full year 2023, diluted EPS increased by 3% to $7.00 per share, up from $6.78 per share in 2022. The increase in EPS reflects the company's improved net income and effective cost management strategies.

Dividend Increase

Otter Tail Corp's board of directors approved an increase in the quarterly common stock dividend to $0.4675 per share, resulting in an indicated annual dividend rate of $1.87 per share for 2024. This represents a 7% increase from the $1.75 per share dividend rate in 2023, reflecting the company's strong financial performance and commitment to returning value to shareholders.

2024 Earnings Guidance

Otter Tail Corp has initiated its 2024 diluted earnings per share guidance range of $5.13 to $5.43. The guidance reflects expected growth in the Electric segment's earnings by approximately 7%, while anticipating a decline in the Plastics segment's earnings due to a continuing downward trend in sales prices and resin spreads. The company remains optimistic about its long-term growth prospects, targeting a compounded annual growth rate in consolidated EPS of 5 to 7% over the long term.