KeyCorp Issues Negative Estimate for Otter Tail Earnings

Key Points

• KeyCorp cut its Q2 2026 EPS estimate for Otter Tail to $1.48 from $1.56, while keeping a Sector Weight rating on the stock.
• Otter Tail’s most recent quarterly results beat expectations, with $1.73 EPS versus the $1.42 consensus and revenue of $347.03 million, topping estimates as well.
• Analyst sentiment remains mixed: the stock currently carries a Hold consensus and an average target price of $86.00, while shares recently traded above that level at $92.21.

Otter Tail Corporation (NASDAQ:OTTR - Free Report) - Equities researchers at KeyCorp decreased their Q2 2026 earnings per share (EPS) estimates for shares of Otter Tail in a note issued to investors on Wednesday, July 22nd. KeyCorp analyst S. Karp now anticipates that the utilities provider will earn $1.48 per share for the quarter, down from their previous estimate of $1.56. KeyCorp currently has a "Sector Weight" rating on the stock. The consensus estimate for Otter Tail's current full-year earnings is $5.48 per share. KeyCorp also issued estimates for Otter Tail's Q3 2026 earnings at $1.43 EPS, Q4 2026 earnings at $0.91 EPS, FY2026 earnings at $5.54 EPS, FY2027 earnings at $4.72 EPS, FY2028 earnings at $4.45 EPS, FY2029 earnings at $4.85 EPS and FY2030 earnings at $5.36 EPS.

Otter Tail (NASDAQ:OTTR - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The utilities provider reported $1.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.42 by $0.31. Otter Tail had a return on equity of 15.21% and a net margin of 21.34%.The firm had revenue of $347.03 million during the quarter, compared to analyst estimates of $339.10 million. During the same period in the prior year, the company posted $1.62 earnings per share. The business's revenue for the quarter was up 2.9% compared to the same quarter last year.

A number of other equities research analysts have also commented on OTTR. Weiss Ratings upgraded Otter Tail from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, May 11th. Siebert Williams Shank lowered Otter Tail from a "buy" rating to a "hold" rating and set a $86.00 target price for the company. in a research note on Wednesday, May 6th. UBS Group reiterated a "reduce" rating on shares of Otter Tail in a research report on Friday, May 29th. Finally, Zacks Research lowered shares of Otter Tail from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 27th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $86.00.

Otter Tail Price Performance

NASDAQ:OTTR opened at $92.21 on Friday. The firm has a market cap of $3.87 billion, a PE ratio of 13.82 and a beta of 0.45. The company's 50-day moving average price is $88.81 and its two-hundred day moving average price is $87.84. The company has a quick ratio of 1.64, a current ratio of 2.04 and a debt-to-equity ratio of 0.56. Otter Tail has a 12 month low of $74.15 and a 12 month high of $95.00.

Otter Tail Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 15th were given a $0.5775 dividend. The ex-dividend date was Friday, May 15th. This represents a $2.31 annualized dividend and a dividend yield of 2.5%. Otter Tail's payout ratio is currently 34.63%.

Hedge Funds Weigh In On Otter Tail

A number of large investors have recently added to or reduced their stakes in the company. Royal Bank of Canada boosted its stake in shares of Otter Tail by 2.5% during the 1st quarter. Royal Bank of Canada now owns 116,479 shares of the utilities provider's stock worth $9,361,000 after acquiring an additional 2,807 shares during the period. AQR Capital Management LLC raised its position in Otter Tail by 26.9% during the first quarter. AQR Capital Management LLC now owns 22,709 shares of the utilities provider's stock valued at $1,825,000 after purchasing an additional 4,815 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Otter Tail by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,611 shares of the utilities provider's stock worth $1,978,000 after buying an additional 1,067 shares during the last quarter. United Services Automobile Association acquired a new stake in shares of Otter Tail in the 1st quarter valued at approximately $223,000. Finally, Jane Street Group LLC boosted its position in Otter Tail by 190.8% in the first quarter. Jane Street Group LLC now owns 54,112 shares of the utilities provider's stock valued at $4,349,000 after buying an additional 35,505 shares in the last quarter. Institutional investors own 61.32% of the company's stock.

Otter Tail Company Profile

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company's service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

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