Core Viewpoint - The article emphasizes the importance of value investing and highlights Otter Tail (OTTR) as a strong value stock based on its Zacks Rank and valuation metrics [2][3][6] Company Analysis - Otter Tail (OTTR) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the best value stocks currently available [3] - The company's price-to-book (P/B) ratio is 2.07, which is lower than the industry average of 2.41, suggesting it may be undervalued [4] - OTTR's P/B ratio has fluctuated between 1.91 and 2.86 over the past 52 weeks, with a median of 2.38 [4] - The price-to-cash flow (P/CF) ratio for OTTR is 8.31, which is also lower than the industry average of 10.81, further indicating potential undervaluation [5] - Over the past year, OTTR's P/CF has ranged from 7.68 to 10.60, with a median of 8.92 [5] - The combination of these metrics suggests that OTTR is likely undervalued and has a strong earnings outlook, making it an attractive investment opportunity [6]

Financial Performance - Operating Revenues decreased by $20.0 million to $338.0 million, a decline of 5.6% compared to the previous year[74]. - Operating Expenses decreased by $6.4 million to $230.5 million, primarily due to lower sales volumes in the Manufacturing segment and reduced fuel costs in the Electric segment[73]. - Interest Expense increased by $2.0 million to $11.2 million, attributed to the issuance of an additional $120.0 million of long-term debt[73]. - Net Income decreased by $6.5 million to $85.5 million, reflecting a decline of 7.1% year-over-year[74]. - Retail Revenues increased slightly by $0.3 million to $110.8 million, while Transmission Services Revenues rose by $1.5 million to $15.2 million[75]. - Wholesale Revenues decreased significantly by $1.6 million to $3.1 million, a drop of 33.9% due to reduced sales volumes[75]. - Operating Income for the Electric segment increased by 10.0% to $36.5 million, supported by favorable weather conditions[80]. - Operating Income for the Manufacturing segment decreased by 69.6% to $2.7 million, primarily due to a 13% decrease in sales volumes[82]. - Consolidated Operating Revenues for the nine months ended September 30, 2024, decreased by $7.4 million, or 0.7%, to $1,027,437, primarily due to decreased sales prices in the Plastics segment and decreased sales volumes in the Manufacturing segment[84]. - Operating Income increased by $5.6 million, or 1.8%, to $313,426, driven by lower operating expenses which decreased by $13.0 million, or 1.8%[84]. - Net Income for the period increased by $10.4 million, or 4.4%, to $246,812, with an effective tax rate decrease from 19.7% to 18.8%[84]. Segment Performance - Electric segment Total Operating Revenues decreased by $11.3 million, or 2.9%, to $384,696, impacted by a $15.4 million decrease in Purchased Power costs due to a 17% decrease in the price of purchased power[85][89]. - Retail Revenues in the Electric segment decreased by $9.0 million, or 2.6%, primarily due to a $14.8 million decrease in fuel recovery revenues and unfavorable weather conditions[87]. - Plastics segment Operating Revenues increased by $37.9 million, or 11.5%, to $366,780, driven by a 28% increase in sales volumes despite a 13% decrease in sales prices[91]. - Operating Income in the Plastics segment increased by $18.3 million, or 9.1%, to $219,136, reflecting strong demand and sales volume growth[91]. Expenses and Income - General and Administrative Expenses surged by $4.4 million to $5.4 million, a 463.1% increase, mainly due to higher insurance and employee benefit costs[83]. - General and Administrative Expenses increased by $5.441 million, or 68.0%, from $8.003 million in 2023 to $13.444 million in 2024[97]. - Operating Loss rose by $5.436 million, or 67.3%, from $8.081 million in 2023 to $13.517 million in 2024[97]. - Other Income increased by $3.0 million to $5.4 million, driven by increased investment income from the Plastics segment[73]. - Other Income increased by $6.7 million, primarily due to increased investment income from short-term cash equivalent investments and long-term marketable securities[84]. Cash Flow and Liquidity - Net Cash Provided by Operating Activities increased by $4.3 million, from $318.495 million in 2023 to $322.775 million in 2024[105]. - Net Cash Used in Investing Activities increased by $80.1 million, from $232.018 million in 2023 to $312.166 million in 2024[106]. - Net Cash Provided by Financing Activities increased by $55.3 million, from a net cash used of $16.259 million in 2023 to $39.038 million in 2024[107]. - Total available liquidity as of September 30, 2024, was $543.8 million, compared to $468.1 million as of September 30, 2023[102]. Capital Expenditures and Investments - The company plans to acquire a solar facility for $23.6 million, with closing expected in the second half of 2025[109]. - The company has a capital expenditure plan that includes investments in electric generation facilities and manufacturing facilities, subject to review based on various factors[108]. Debt and Compliance - The company is in compliance with all financial covenants as of September 30, 2024[102]. - OTP issued $120.0 million of senior unsecured notes in March 2024, consisting of $60.0 million of 5.48% notes due April 1, 2034, and $60.0 million of 5.77% notes due April 1, 2054, to repay short-term borrowings and fund capital expenditures[116]. - As of September 30, 2024, the company had $947.0 million of principal outstanding under long-term debt arrangements, with maturities ranging from 2026 to 2054[116]. - OTC's interest-bearing debt to total capitalization ratio was 0.38 to 1.00, and OTP's was 0.48 to 1.00 as of September 30, 2024, both within the required limits[118]. - OTC's interest and dividend coverage ratio was 10.4 to 1.00, while OTP's was 3.27 to 1.00 as of September 30, 2024, indicating strong coverage[118]. - The company remains in compliance with all financial covenants as of September 30, 2024, with no priority indebtedness outstanding for both OTC and OTP[118]. Regulatory and Market Information - The North Dakota Rate Case filed by OTP requests a net increase in annual revenue of $22.5 million, or 10.9%, to adjust for regulatory changes and cost recovery mechanisms[96]. - There have been no material changes to the company's critical accounting policies and estimates since the last Annual Report on Form 10-K[119]. - The company reported no material changes in market risk from the previous disclosures in the Annual Report on Form 10-K for the year ended December 31, 2023[120].

Q3 2024 Earnings Conference Call November 5, 2024 Forward-Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "wou ...

Otter Tail Corporation (NASDAQ:OTTR) Q3 2024 Earnings Conference Call November 5, 2024 11:00 AM ET Company Participants Beth Eiken – Manager-Investor Relations Chuck MacFarlane – President and Chief Executive Officer Todd Wahlund – Vice President and Chief Financial Officer Conference Call Participants Ida Wozniak - Siebert Williams Shank & Co Tate Sullivan - Maxim Group Operator Good morning, and welcome to the Otter Tail Corporation's Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. P ...

Press Release November 4, 2024 Otter Tail Corporation Announces Third Quarter Earnings, Increases Consolidated 2024 Annual Earnings Guidance FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2024. SUMMARY • Midpoint of 2024 earnings guidance increased $0.15 to $7.07 per share. • Diluted earnings per share decreased 7% to $2.03 per share compared to the third quarter of 2023. • Return on equity of 20% over the trailing twelve ...

Otter Tail (OTTR) came out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.97 per share. This compares to earnings of $2.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.05%. A quarter ago, it was expected that this power company and manufacturer would post earnings of $1.76 per share when it actually produced earnings of $2.07, delivering a surprise of 17.61%.Over the last four quart ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 0-53713 OTTER TAIL CORPORATION (Exact name of registrant as specified in its charter) Minnesota (State or other jurisdiction of incorporation or orga ...

Otter Tail Corporation (NASDAQ:OTTR) Q2 2024 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants Beth Eiken – Manager-Investor Relations Chuck MacFarlane – President and Chief Executive Officer Todd Wahlund – Vice President and Chief Financial Officer Conference Call Participants Operator Good morning, and welcome to the Otter Tail Corporation's Second Quarter 2024 Earnings Conference Call. Today's call is being recorded. We will hold a question-and-answer session after the prepared rem ...

Q2 2024 Earnings Conference Call August 6, 2024 Forward-Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "would ...

Press Release August 5, 2024 Otter Tail Corporation Announces Record Second Quarter Earnings, Maintains Electric Segment Guidance and Increases Consolidated 2024 Annual Earnings Guidance FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2024. SUMMARY • Diluted earnings per share increased 6% to $2.07 per share compared to the second quarter of 2023. • Midpoint of 2024 earnings guidance increased 8% to $6.92 per share, or a return ...