OTTR - Otter Tail reports Q4 earnings miss; initiates FY23 outlook

• Otter Tail press release ( NASDAQ: OTTR ): Q4 GAAP EPS of $1.00 misses by $0.05 .
• Revenue of $301.4M (-9.5% Y/Y) misses by $36.7M .
• The corporation achieved a consolidated return on equity of 25.6% on an equity ratio of 59.4%.
• Outlook: "Looking forward, our long-term focus remains on executing our strategy to grow our business and achieving operational, commercial and talent excellence to strengthen our position in the markets we serve. Our Electric segment anticipates approximately $1 billion in capital expenditures over the next 5 years, which results in a compounded annual growth rate in rate base of 6.4% from the end of 2022 to the end of 2027. We remain confident in our ability to achieve a compounded annual growth rate in earnings per share in the range of 5% to 7% using 2024 as the base year."
• "We are initiating our 2023 earnings per share guidance range of $3.76 to $4.06 vs. consensus of $3.90. We anticipate Plastics segment earnings to recede from its record level in 2022 as we expect industry conditions will normalize throughout the year. We continue to expect an earnings mix of approximately 65% from our Electric segment and 35% from our manufacturing platform beginning in 2024."

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