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

Otter Tail Corporation (NASDAQ:OTTR)’s stock price was down 5.1% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $87.12 and last traded at $86.80. Approximately 35,508 shares traded hands during trading, a decline of 86% from the average session volume of 248,893 shares. The stock had previously closed at $91.51.

The utilities provider reported $1.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.55 by ($0.14). The firm had revenue of $320.51 million during 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%. Otter Tail’s revenue was down 1.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.86 EPS. Otter Tail has set its FY 2026 guidance at 5.730-6.030 EPS.

Otter Tail Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 13th will be issued a $0.5775 dividend. The ex-dividend date is Friday, November 13th. This represents a $2.31 annualized dividend and a yield of 2.7%. Otter Tail’s dividend payout ratio (DPR) is 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 Ratings Changes

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Commonwealth Equity Services LLC grew its holdings in shares of Otter Tail by 9.8% during the third quarter. Commonwealth Equity Services LLC now owns 28,289 shares of the utilities provider’s stock valued at $2,491,000 after buying an additional 2,521 shares during the last quarter. Next Level Wealth Planning LLC bought a new position in Otter Tail in the third quarter worth approximately $25,000. ProShare Advisors LLC lifted its position in Otter Tail by 37.7% during the third quarter. ProShare Advisors LLC now owns 111,468 shares of the utilities provider’s stock valued at $9,814,000 after purchasing an additional 30,540 shares in the last quarter. Vise Technologies Inc. raised its stake in Otter Tail by 6.7% during the 3rd quarter. Vise Technologies Inc. now owns 2,503 shares of the utilities provider’s stock worth $220,000 after acquiring an additional 158 shares during the period. Finally, Choreo LLC bought a new position in Otter Tail in the 3rd quarter worth $284,000. Hedge funds and other institutional investors own 61.32% of the company’s stock.

Otter Tail Stock Performance

The business has a 50 day moving average price of $89.42 and a two-hundred day moving average price of $88.81. 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.

Otter Tail Company Profile

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.