Allete (NYSE:ALE) Announces Quarterly Earnings Results

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) posted its earnings results on Thursday, August 7th. The utilities provider reported $0.61 EPS for the quarter, missing analysts' consensus estimates of $0.85 by ($0.24), Zacks reports. The company had revenue of $360.30 million during 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 company's quarterly revenue was up 1.6% on a year-over-year basis. During the same period last year, the business earned $0.82 earnings per share.

Allete Stock Down 0.1%

Shares of NYSE ALE traded down $0.09 during mid-day trading on Thursday, reaching $65.76. The company had a trading volume of 405,109 shares, compared to its average volume of 524,772. 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 has a 50 day simple moving average of $65.23 and a two-hundred day simple moving average of $65.29. The stock has a market cap of $3.82 billion, a P/E ratio of 20.74 and a beta of 0.77. Allete has a 52-week low of $63.00 and a 52-week high of $66.46.

Allete Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Friday, August 15th will be given a $0.73 dividend. This represents a $2.92 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date of this dividend is Friday, August 15th. Allete's dividend payout ratio (DPR) is 92.11%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Lighthouse Investment Partners LLC purchased a new position in shares of Allete in the 2nd quarter valued at $7,734,000. Raymond James Financial Inc. grew its position in shares of Allete by 5.7% in the 2nd quarter. Raymond James Financial Inc. now owns 59,716 shares of the utilities provider's stock valued at $3,826,000 after buying an additional 3,209 shares during the last quarter. Occudo Quantitative Strategies LP purchased a new position in shares of Allete in the 2nd quarter valued at $655,000. Quantinno Capital Management LP grew its position in shares of Allete by 44.1% in the 2nd quarter. Quantinno Capital Management LP now owns 19,872 shares of the utilities provider's stock valued at $1,273,000 after buying an additional 6,078 shares during the last quarter. Finally, Alliancebernstein L.P. grew its position in Allete by 24.5% during the 2nd quarter. Alliancebernstein L.P. now owns 589,846 shares of the utilities provider's stock worth $37,791,000 after purchasing an additional 116,120 shares during the last quarter. 76.55% of the stock is 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.