By Connor Hart
Shares of Otter Tail climbed after the company guided for higher-than-expected earnings in 2025, boosted by its electric segment.
The stock gained 9.2% to $84.10 in midday trading Tuesday. Shares are up 14% since the beginning of the year, despite being down 6.7% in the past 52 weeks.
The manufacturing and electrical utility-focused conglomerate guided for per-share earnings between $5.68 and $6.08 in 2025, ahead of the $5.62 that analysts surveyed by FactSet are expecting.
Chief Executive Chuck MacFarlane said the outlook reflects improved earnings from the company's electric unit. This increase will offset lower returns from its plastics and manufacturing segments, which are expected to be dragged down by lower prices and challenged end-market demand.
Earlier in the day, the Fergus Falls, Minn., company posted a profit of $54.9 million, down from $57.8 million a year earlier. Quarterly earnings came in at $1.30 a share, ahead of the $1.27 a share that analysts polled by FactSet were expecting.
Revenue fell to $303.1 million from $314.3 million.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
February 18, 2025 12:19 ET (17:19 GMT)
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