DTE Energy Company (DTE - Analyst Report) reported third quarter 2013 earnings per share of $1.13, missing the Zacks Consensus Estimate by 8.8%. The bottom line also declined 13% year over year from $1.30 per share.
The underperformance reflects unusually hot weather last year which was not seen this quarter and lower earnings from the Gas segment.
Total revenue at DTE Energy climbed 9% year over year to $2,387.0 million. The reported quarter's revenue, however, fell short of the Zacks Consensus Estimate of $2,410.0 million.
Fuel, purchased power and gas expenses increased 27% year over year to $967.0 million. Operation and maintenance expenses moved up 6% year over year to $728.0 million.
Total operating expenses escalated 15.4% year over year to $2,058.0 million. Despite the higher top-line, spiraling expenses dented the operating income of the company by 19.0% year over year to settle at $329.0 million.
DTE Electric: Segment earnings were $179.0 million or $1.02 per share, down from $194.0 million or $1.13 per share in the prior-year quarter.
DTE Gas: Segment loss was $13.0 million or 7 cents per share compared with a profit of $4.0 million or 2 cents per share in the third quarter of 2012.
Gas Storage and Pipelines: The segment generated a profit of $16 million or 9 cents per share, up from $14 million or 8 cents per share in the year-ago quarter.
Power and Industrial Projects: The segment posted a profit of $27.0 million or approximately 15 cents per share, up from $22.0 million or 13 cents per share.
Energy Trading: The segment posted a loss of $6.0 million or 3 cents per share versus a profit of $1.0 million or 1 cent per share in the prior-year period.
Corporate and Other: Loss in the quarter was $5.0 million or 3 cents per share versus a loss of $9.0 million or 7 cents per share a year ago.
As of Sep 30, 2013, cash and cash equivalents were $71.0 million, up from $65 million as of Dec 31, 2012. At the end of third quarter 2013, long-term debt, net of current portion, was $6,846.0 million versus $7,014.0 million at year-end 2012.
Net operating cash flow in the first nine months of 2013 was $1,715.0 million versus $1,729.0 million in the first nine months of 2012.
The company tightened its earnings per share guidance for 2013 to the range of $3.95 to $4.15 from the prior range of $3.90 to $4.20.
Other Upcoming Utility Releases
Integrys Energy Group, Inc. (TEG - Analyst Report) is expected to release third quarter results on Nov 6, 2013. The Zacks Consensus Estimate for the quarter is 45 cents.
Calpine Corp.’s (CPN - Snapshot Report) earnings are scheduled to release on Nov 7, 2013. The Zacks Consensus Estimate for the quarter is 58 cents per share.
Alliant Energy Corp. (LNT - Snapshot Report) is expected to release its third quarter results on Nov 7, 2013. The Zacks Consensus Estimate for the quarter is $1.32 per share.
DTE Energy failed to impress in the third quarter 2013 with both earnings and revenue trailing our estimates. The company’s cost-control efforts are yet to pay off as the quarter saw a substantial rise in operating expenses.
However, DTE Energy’s foray into wind energy generation is well-timed and will lend significant upside in the coming years owing to the Obama Climate Change program and an extension of the wind energy tariff. DTE Energy presently retains a Zacks Rank #3 (Hold).