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Does The Street Have Otter Tail Figured Out?

By Seth Jayson – Updated Apr 7, 2017 at 12:03PM

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Checking expectations

Otter Tail (Nasdaq: OTTR) is expected to report Q3 earnings on Nov. 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Otter Tail's revenues will wane -15.7% and EPS will grow 94.4%.

The average estimate for revenue is $266.2 million. On the bottom line, the average EPS estimate is $0.35.

Revenue details
Last quarter, Otter Tail booked revenue of $283.7 million. GAAP reported sales were 0.1% higher than the prior-year quarter's $283.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.29. GAAP EPS were -$0.49 for Q2 versus $0.51 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 20.8%, 300 basis points better than the prior-year quarter. Operating margin was 7.7%, 300 basis points better than the prior-year quarter. Net margin was -6.1%, 1,270 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.18.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 957 members out of 986 rating the stock outperform, and 29 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Otter Tail a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Otter Tail is hold, with an average price target of $23.17.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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