Shares of Otter Tail Corp (OTTR) surged 5.04% on Monday after the electric utilities company reported better-than-expected earnings for the third quarter of 2024, although revenue fell short of estimates.

For the quarter ended September 30, Otter Tail posted adjusted earnings of $2.03 per share, exceeding the average analyst estimate of $1.98 per share. However, revenue declined 5.6% year-over-year to $338.03 million, missing the consensus forecast of $377.15 million.

Despite the top-line miss, investors appeared to focus on the bottom-line beat, driving Otter Tail's stock higher. The company reported net income of $85.48 million for the quarter. While analyst ratings on the stock remain a "hold" with a median price target of $80, earnings estimates have been revised higher over the past three months, signaling improving sentiment.