3 Stocks Pushing The Utilities Sector Lower
- OTTER TAIL CORP has improved earnings per share by 43.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OTTER TAIL CORP increased its bottom line by earning $1.38 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.38).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electric Utilities industry average. The net income increased by 39.5% when compared to the same quarter one year prior, rising from $15.36 million to $21.43 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 10.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that OTTR's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, OTTER TAIL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
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