The longtime Motley Fool Hidden Gems recommendation just reported second-quarter earnings, showing muscle in all the right places. Last year's $0.40 loss per share on continuing operations turned into a $0.16 net profit on the same basis. Revenues jumped 26% year over year.
The company has been busy refining and focusing its range of non-electric operations. The wind-power equipment segment is facing challenges but remains worth a turnaround effort -- but the heavy transport service for hauling those heavy wind towers around has gone by the wayside. And the Idaho Pacific dehydrated-potato producer was recently sold to a private-equity firm, bringing in $87 million of crisp, clean dollar bills in return for a stale potato business.
There are other "strategic realignment" moves coming, though we don't know whether Otter Tail plans to be a buyer or a seller at this point.
Backed by $41 million in operating cash flows this quarter and a solid business model, Otter Tail pays generous dividends. The current 5.8% yield is very comparable with much larger electric peers Duke Energy
Want to learn more about this swimming mammal? I can think of two excellent resources:
- Add Otter Tail to My Watchlist for a steady flow of news and Foolish analysis.
- Grab an absolutely free, no-strings-attached 30-day trial to Hidden Gems. You'll get instant access to six years of in-depth analysis and a tremendous discussion board for every Gems recommendation.