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/Mis Actual Consensu

s s

Estimate

Q3 Miss $325.60 $331.28

Revenue mln mln (2

Analysts

)

Q3 EPS $1.86

Q3 $0.525

Dividend

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 ( OTTR ) 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:

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(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.)