Allete (NYSE:ALE) Releases Earnings Results, Misses Expectations By $0.24 EPS

Key Points

• Allete reported earnings of $0.61 EPS for the quarter, which missed analysts' estimates by $0.24 EPS, with revenue at $360.30 million compared to expected $425.30 million.
• The company announced a quarterly dividend of $0.73 per share, with a dividend yield of 4.5% and a payout ratio of 91.54%.
• Allete shares traded down 0.02 on Friday, currently priced at $65.58, with a market capitalization of $3.80 billion.

Allete (NYSE:ALE - Get Free Report) announced its quarterly earnings results on Thursday. The utilities provider reported $0.61 EPS for the quarter, missing analysts' consensus estimates of $0.85 by ($0.24), Zacks reports. The business had revenue of $360.30 million for the quarter, compared to analysts' expectations of $425.30 million. Allete had a net margin of 11.98% and a return on equity of 5.71%. The business's quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.82 earnings per share.

Allete Stock Performance

Shares of ALE stock traded down $0.02 during trading on Friday, reaching $65.58. 1,001,337 shares of the company's stock traded hands, compared to its average volume of 702,235. The company has a market capitalization of $3.80 billion, a P/E ratio of 20.69 and a beta of 0.77. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.57. The firm's 50-day moving average is $65.18 and its 200 day moving average is $65.29. Allete has a 1 year low of $63.00 and a 1 year high of $66.46.

Allete Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Friday, August 15th will be paid a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Friday, August 15th. Allete's dividend payout ratio is presently 91.54%.

Institutional Trading of Allete

A number of institutional investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Allete by 32.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 133,324 shares of the utilities provider's stock valued at $8,759,000 after buying an additional 32,374 shares in the last quarter. Jane Street Group LLC increased its holdings in Allete by 1,855.4% during the 1st quarter. Jane Street Group LLC now owns 103,031 shares of the utilities provider's stock worth $6,769,000 after acquiring an additional 97,762 shares during the period. Empowered Funds LLC increased its holdings in Allete by 9.8% during the 1st quarter. Empowered Funds LLC now owns 6,233 shares of the utilities provider's stock worth $410,000 after acquiring an additional 558 shares during the period. Finally, United Services Automobile Association bought a new stake in Allete during the 1st quarter worth approximately $239,000. 76.55% of the stock is currently owned by hedge funds and other institutional investors.

About Allete

ALLETE, Inc operates as an energy company. The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, biomass co-fired / natural gas, hydroelectric, wind, and solar. In addition, the company provides regulated utility electric services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric services in northeastern Minnesota to approximately 150,000 retail customers and 14 non-affiliated municipal customers.

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