Earnings Preview: ALLETE Inc. - Analyst Blog
February 12 2013 - 11:00AM
Zacks
ALLETE Inc. (ALE)
is slated to release its fourth quarter 2012 financial results
before the market bell on Feb 15, 2013. In the last reported
quarter, the power generation, transmission and distribution
company posted a positive earnings surprise of 6.85%. Let’s see how
things are shaping up at ALLETE prior to this announcement.
Factors to Consider This
Quarter
We believe the environmental
modernization program at Minnesota Power’s Boswell Unit 4 could
shove up cost thereby creating margin pressure. Moreover,
regulatory obligations will continue to put stress on the company’s
growth trajectory.
However, we anticipate the
commencement of operations at the Magnetation facility, a
partnership venture with Steel Dynamics of Indiana and the Bison 2
and 3 renewable projects could to a certain extent mitigate the
aforementioned negatives.
Earnings
Whispers
Our proven model does not
conclusively show that ALLETE is likely to beat earnings this
quarter. This is because a stock needs to have both a positive
earnings Expected Surprise Prediction (ESP) (Read: Zacks Earnings
ESP: A Better Method) and a Zacks Rank of #1, 2 or 3 for this to
happen. This is not the case here.
Negative Zacks
ESP: This is because the Most Accurate estimate stands at
74 cents per share while the Zacks Consensus Estimate is higher at
75 cents, resulting in -1.33% ESP.
Zacks Rank #3
(Hold): ALLETE’s Zacks Rank #3 when combined with negative
ESP makes surprise prediction difficult. We caution investors
against the stock going into the earnings announcement, as a
negative Zacks ESP lowers the possibility of an earnings
surprise.
Other Stocks to
Consider
Other companies you may want to
consider on the basis of our model which shows that they have the
right combination of elements to post an earnings beat this quarter
are as follows:
NV Energy Inc.
(NVE) has earnings ESP of +14.29% and carries a Zacks Rank #3
(Hold).
PG&E
Corporation (PCG) has earnings ESP of +1.75% and carries a
Zacks Rank #3 (Hold).
CenterPoint Energy
Inc. (CNP) has earnings ESP of +14.29% and carries a
Zacks Rank #3 (Hold).
ALLETE INC (ALE): Free Stock Analysis Report
CENTERPOINT EGY (CNP): Free Stock Analysis Report
NV ENERGY INC (NVE): Free Stock Analysis Report
PG&E CORP (PCG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Allete (NYSE:ALE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Jul 2023 to Jul 2024