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What's in the Cards for DTE Energy (DTE) in Q3 Earnings?

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DTE Energy Company (DTE - Free Report) is slated to report third-quarter 2022 results on Oct 27 before the opening bell. 

Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 1.03%.

Factors to Note

In the third quarter, DTE Energy’s service territories witnessed warmer-than-normal temperatures. This is likely to have boosted the electricity demand for cooling purposes among the company’s customers, which can be expected to have favorably impacted the company’s revenues.

However, DTE’s service territories experienced a significant drought condition in July. This might have disrupted the smooth flow of electricity among its customers, thus partially impacting the overall revenues of the company in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $4.50 billion, suggesting an increase of 21% from the year-ago quarter.

From the cost perspective, the higher rate-based cost and increased operating and maintenance expenses are likely to have adversely impacted the bottom line of the company in the third quarter of 2022.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.64 per share, indicating a decline of 4.7% from the prior-year reported figure.

DTE Energy Company Price and EPS Surprise

DTE Energy Company Price and EPS Surprise

DTE Energy Company price-eps-surprise | DTE Energy Company Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for DTE Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DTE currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:

NextEra Energy (NEE - Free Report) has an Earnings ESP of +1.91% and a Zacks Rank #2. The Zacks Consensus Estimate for NextEra Energy’s third-quarter revenues is pegged at $6.34 billion, suggesting growth of 45% from the year-ago quarter.

The Zacks Consensus Estimate for NEE’s third-quarter earnings is pegged at 79 cents per share, indicating growth of 5.3% from the prior-year reported figure.

Edison International (EIX - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter earnings is pegged at $1.62 per share, indicating a decline of 4.1% from the prior-year reported figure.

Edison International boasts a long-term earnings growth rate of 2.6%. The Zacks Consensus Estimate for EIX’s third-quarter sales is pegged at $5.08 billion, suggesting a 4.1% decrease from the prior-year reported figure.

Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter earnings, pegged at $2.62 per share, implies a decline of 12.7% from the prior-year quarter’s tally.

PNW has a four-quarter earnings surprise of 115.48%. The Zacks Consensus Estimate for Pinnacle’s third-quarter sales suggests a growth rate of 0.6% from the prior-year quarter’s tally.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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