Otter Tail Corp. (NASDAQ: OTTR) may have been caught with its tail between its legs. The small diversified mini-conglomerate has warned that its earnings were going to fall short of expectations. For those new to Otter Tail, this is one which Jim Cramer featured for its wind power operations. Based on its very diversified operations and its small size, we’ve dubbed this on "General Eclectic" to describe the manner of the conglomerate’s operations. We have also noticed how Bill Gates was an owner of this one.
The company posted $0.11 EPS on $326.5 million in revenues. We onlysaw two estimates at $0.53 & $0.59 on EPS and $ 322.8M and $339.9Min revenues. There were some items in the quarter that affectedearnings, but the company’s CEO cited challenges in its manufacturingsegment and the impact of a rate case decision in Minnesota as reasonsfor the shortfall.
Based upon the data, the company did say that it was cutting its full2008 guidance down to a range of $1.40 to $1.65 from a prior range of$1.75 to $2.00, and well under the two estimates of $1.82 and $1.90.
The company received permission for a 2.9% rate increase inelectricity, but it had requested a 6.7% increase and it recorded aliability of $2.2 million that it will use for refunds from 2007terms. It sees plastics running below normal levels for 2008 andexpects a decrease in manufacturing net income and in health services.As elsewhere, corporate costs are also rising in 2008.
Shares were only about $2.00 short of the 52-week highs, so this wasn’t just a surprise. It may be dealt with harshly. This news came out last night and he initial reaction was a haircut of 10%.
Jon C. Ogg
August 5, 2008
If You’ve Been Thinking About Retirement, Pay Attention (sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today! (sponsor)
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
