Otter Tail (NASDAQ:OTTR) Shares Down 5.1% on Disappointing Earnings

Otter Tail Corporation (NASDAQ:OTTR)’s share price traded down 5.1% on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $87.12 and last traded at $86.80. 35,508 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 248,893 shares. The stock had previously closed at $91.51.

The utilities provider reported $1.41 earnings per share for the quarter, missing the consensus estimate of $1.55 by ($0.14). The company had revenue of $320.51 million for the quarter, compared to analysts’ expectations of $327.87 million. Otter Tail had a net margin of 14.83% and a return on equity of 14.56%. The business’s revenue was down 1.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.86 earnings per share. Otter Tail has set its FY 2026 guidance at 5.730-6.030 EPS.

Otter Tail Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be given a dividend of $0.5775 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $2.31 annualized dividend and a dividend yield of 2.7%. Otter Tail’s payout ratio is currently 49.78%.

Key Stories Impacting Otter Tail

Here are the key news stories impacting Otter Tail this week:

• Positive Sentiment: Otter Tail declared a quarterly dividend of $0.5775 per share, payable December 10 to shareholders of record November 13. The annualized dividend is $2.31 per share, representing a yield of approximately 2.5%. Dividend information
• Positive Sentiment: Management affirmed the midpoint of its full-year 2026 earnings outlook and narrowed the guidance range, signaling continued confidence in its strategic growth plan despite a challenging operating environment. Otter Tail third-quarter results and guidance
• Neutral Sentiment: Otter Tail reported third-quarter diluted EPS of $1.41 and revenue of $320.5 million. Profitability remained solid, with a 14.83% net margin and 14.56% return on equity, but results were weaker than the prior-year quarter.
• Negative Sentiment: Third-quarter EPS of $1.41 missed analyst estimates ranging from $1.54 to $1.57, while revenue also came in below expectations at $320.5 million versus approximately $327.9 million. EPS declined from $1.86 a year earlier, and revenue fell 1.6% year over year. Otter Tail third-quarter earnings miss
• Negative Sentiment: Updated full-year 2026 EPS guidance of $5.73-$6.03 has a midpoint of $5.88, modestly below the $6.05 consensus estimate, which could limit near-term upside expectations. Otter Tail 2026 earnings guidance

Analyst Upgrades and Downgrades

Separately, Weiss Ratings raised shares of Otter Tail from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 13th. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $86.00.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in Otter Tail in the 2nd quarter valued at about $590,053,000. Caisse de depot et placement du Quebec purchased a new position in shares of Otter Tail during the second quarter worth approximately $48,578,000. Bank of New York Mellon Corp purchased a new position in shares of Otter Tail during the second quarter worth approximately $32,238,000. Bank of America Corp DE raised its stake in shares of Otter Tail by 3.5% during the first quarter. Bank of America Corp DE now owns 336,483 shares of the utilities provider’s stock valued at $29,533,000 after acquiring an additional 11,363 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in shares of Otter Tail by 16.2% during the first quarter. Principal Financial Group Inc. now owns 231,889 shares of the utilities provider’s stock valued at $20,353,000 after acquiring an additional 32,266 shares in the last quarter. Hedge funds and other institutional investors own 61.32% of the company’s stock.

Otter Tail Stock Down 5.1%

The company has a quick ratio of 1.36, a current ratio of 1.71 and a debt-to-equity ratio of 0.60. The stock has a market cap of $3.64 billion, a P/E ratio of 18.78 and a beta of 0.42. The company’s 50 day moving average price is $89.42 and its two-hundred day moving average price is $88.81.

About Otter Tail

Otter Tail Corporation is a diversified company headquartered in Fergus Falls, Minnesota. Through its electric utility subsidiary, Otter Tail Power Company, it generates, transmits and distributes electricity to residential, commercial, industrial and agricultural customers.

Otter Tail Power Company serves customers across portions of western Minnesota, eastern North Dakota and northeastern South Dakota. Its generation portfolio includes coal, natural gas, wind and other energy resources, supporting the company’s role as a regional provider of electric power and related utility services.

Beyond its utility operations, Otter Tail Corporation owns manufacturing businesses that produce fabricated metal components, plastic products and other specialized goods.