Otter Tail raises FY24 EPS view to to $6.23-$6.53 from $5.13-$5.43

Consensus is for FY24 EPS $5.30. The company said “We expect our earnings mix in 2024, based on our updated guidance, to be approximately 34% from our Electric segment and 66% from our Manufacturing and Plastics segments, net of corporate costs.” The following items contribute to the revised 2024 earnings guidance: Electric Segment – maintains guidance, expecting earnings to increase 7% over 2023. Manufacturing Segment – Decreases segment earnings guidance based on anticipated lower sales volumes within certain end markets, including horticulture, lawn and garden, recreational vehicle and agriculture, as distributor inventory levels normalize and end market demand softens; declining operating margins as lower production and sales volumes negatively impact leverage of our fixed manufacturing costs; reduced research and development tax credits from a reduction in associated cost. Plastics Segment – increases segment earnings guidance based on continued strength in product sales prices as the rate of decline continues to be slower than our previous expectations. Increased sales volumes as end market demand has strengthened and distributors are rebuilding depleted inventories. Corporate Costs – maintains corporate cost guidance.