Otter Tail raises FY23 EPS view to $6.76-$6.96 from $5.70-$6.00

Consensus is for FY23 EPS $5.90. The company expects earnings mix in 2023, based on updated guidance, to be approximately 30% from Electric segment and 70% from Manufacturing and Plastics segments, net of corporate costs. This anticipated mix deviates from our long-term expected earnings mix of approximately 65% Electric/35% non-electric as Plastics segment continues to produce elevated earnings. President and CEO Chuck MacFarlane said, “We are increasing our 2023 diluted earnings per share guidance to a range of $6.76-$6.96 from our previous range of $5.70-$6.00. The increase in our guidance is primarily driven by stronger than expected Plastics segment earnings and revised expectations for the Q4 of the year. Our long-term focus remains unchanged – executing our strategy to grow our businesses and achieve operational, commercial and talent excellence to strengthen our position in the markets we serve. We believe our businesses are well-positioned to achieve these objectives and to deliver on our financial targets, including producing over the long-term a compounded annual growth rate in earnings per share of 5%-7% based on an earnings mix of approximately 65% from our Electric segment and 35% from our Manufacturing and Plastics segments.”