Otter Tail posts Q2 net loss on $103.5 mln legal settlement, initiates adjusted EPS outlook
OTTR•Q2 results hit by legal settlement
Otter Tail reported a second-quarter net loss driven by a $103.5 million legal settlement.
Adjusted diluted EPS for the quarter was $1.66, excluding the settlement impact.
Segment drivers and analyst coverage
- Legal settlement - Q2 net loss in the Plastics segment was primarily due to the $103.5 million legal settlement expense related to antitrust litigation.
- Strong plastics volumes - Plastics segment adjusted results were supported by a 15% increase in sales volumes as customers purchased ahead of PVC resin price hikes and new Phoenix facility capacity.
- Higher manufacturing sales - Manufacturing segment saw improved financial results due to higher sales volumes and favorable product mix, especially in recreational vehicle, construction and horticulture markets.
The current average analyst rating on the shares is hold, with no strong buy or buy, 4 hold and no sell or strong sell recommendations.
