ALLETE, Inc. (NYSE: ALE) Financial Performance Overview
- ALLETE, Inc. (NYSE:ALE) reported an EPS of $0.87, missing the estimated $1.02.
- Revenue for the period was approximately $364.8 million, below the estimated $413.5 million.
- The company maintains a P/E ratio of approximately 21.14, indicating investor confidence in its future earnings potential.
ALLETE, Inc. (NYSE:ALE) is a diversified energy company based in Duluth, Minnesota. It operates in the energy sector, providing electricity and energy services primarily in the upper Midwest. The company is involved in regulated utilities, renewable energy, and infrastructure development. ALE competes with other energy providers in the region, focusing on sustainable and reliable energy solutions.
On February 13, 2025, ALE reported earnings per share (EPS) of $0.87, missing the estimated $1.02. This shortfall reflects a broader trend seen in 2024, where ALE's EPS was $3.10, down from $4.30 in 2023. The decrease in EPS is partly due to transaction expenses related to a merger agreement, which impacted earnings by approximately 39 cents per share.
ALE's revenue for the reported period was approximately $364.8 million, falling short of the estimated $413.5 million. This decline is consistent with the company's 2024 performance, where operating revenue was $1.5 billion, down from $1.9 billion in 2023. The revenue drop can be attributed to various factors, including changes in interim rates and additional share issuance, which diluted earnings per share by two cents.
Despite these challenges, ALE maintains a price-to-earnings (P/E) ratio of approximately 21.14, indicating investor confidence in its future earnings potential. The company's price-to-sales ratio is about 2.43, and its enterprise value to sales ratio is around 3.51, reflecting its market valuation relative to sales. ALE's earnings yield stands at about 4.73%, providing a measure of the return on investment for shareholders.
ALE's financial health is supported by a debt-to-equity ratio of approximately 0.64, indicating a moderate level of debt compared to equity. The company's current ratio of about 1.45 suggests it has sufficient liquidity to cover short-term liabilities. These metrics highlight ALE's ability to manage its financial obligations while navigating the challenges of the energy sector.
| Symbol | Price | %chg |
|---|---|---|
| 9502.T | 1759.5 | 0 |
| 1773.T | 60 | 0 |
| CPLE11.SA | 50.12 | 0 |
| DEWA.AE | 2.66 | 0 |
ALLETE, Inc. (NYSE: ALE) Q3 Earnings Report Analysis
- ALLETE, Inc. (NYSE:ALE) reported a Q3 EPS of $0.78, missing the estimated $0.93 but surpassed revenue expectations with $407.2 million.
- The company's net income decreased significantly from the previous year's Q3, highlighting a drop from $85.9 million to $45 million.
- Despite the earnings miss, ALLETE's financial ratios such as a P/E ratio of 20.53 and a debt-to-equity ratio of 0.63 indicate a stable financial position.
ALLETE, Inc. (NYSE:ALE), a diversified energy company based in Duluth, Minnesota, operates across the United States in the energy sector. It competes with other energy giants like Xcel Energy and NextEra Energy, focusing on regulated utilities, renewable energy, and infrastructure development.
On October 30, 2024, ALE reported its third-quarter earnings before the market opened. The company achieved an earnings per share (EPS) of $0.78, which was below the estimated $0.93. Despite this, ALE's revenue was $407.2 million, surpassing the estimated $391 million. This indicates strong revenue performance despite lower-than-expected earnings.
ALE's net income for the third quarter of 2024 was $45 million, translating to 78 cents per share. This is a significant decrease from the previous year's third quarter, where the company reported earnings of $1.49 per share on a net income of $85.9 million. The 2023 results were boosted by a favorable arbitration ruling, contributing 71 cents per share, as highlighted by Business Wire.
The company's financial ratios provide insight into its performance. ALE has a price-to-earnings (P/E) ratio of approximately 20.53, indicating how much investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 2.36, and the enterprise value to sales ratio is around 3.43, reflecting the company's valuation relative to its sales.
ALE's debt-to-equity ratio is 0.63, showing a moderate level of debt compared to equity. The current ratio of about 1.45 suggests a good level of liquidity, meaning ALE can cover its short-term liabilities with its short-term assets. The earnings yield of 4.87% indicates the return on investment for shareholders.
