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DTE Energy (DTE) Beats Q2 Earnings Estimates, Ups View

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DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.

On a GAAP basis, earnings came in at 84 cents per share, compared with 61 cents reported in the prior-year quarter. The variance between GAAP and pro forma earnings was due to certain non-recurring items, mark-to-market adjustments and discontinued operations.

Total Revenue

Total revenue came in at $2,262 million, missing the Zacks Consensus Estimate of $2,288 million by 1.1%. Reported revenues were also down 0.3% from the year-ago figure of $2,268 million primarily on account of lower contribution from non-utility operations.

DTE ENERGY CO Price, Consensus and EPS Surprise

DTE ENERGY CO Price, Consensus and EPS Surprise | DTE ENERGY CO Quote

Operating Update

Operation and maintenance expenses in the reported quarter were $542 million, up 1.9% year over year.

Total operating expenses decreased 2.8% to $2,006 million. This was primarily due to lower fuel, purchased power and gas expenses – utility (4.6%) and non-utility (6.8%), and a loss and impairment in assets.

Operating income increased 25.5% to $256 million.

Segmental Highlights

Utility Operations

DTE Electric: Segment operating earnings were $135 million, up 21.6% year over year.

DTE Gas: The segment reported operating income of $13 million. In the year-ago period, it had posted a loss of $7 million.

Non-Utility Operations

Gas Storage and Pipelines: The segment generated profits of $35 million, up from $25 million a year ago.

Power and Industrial Projects: The segment posted profits of $17 million, down from $18 million in the prior-year quarter.

Corporate and Other: The segment incurred a loss of $23 million, wider than the year-ago loss of $13 million.

Financial Update

Cash from operations in the first half of 2016 was $1.3 billion, with free cash flow of $0.3 billion.

The company utilized $0.3 billion to pay dividends and another $0.6 billion to redeem existing debts during the first half of the year.

Guidance

DTE Energy raised its operating earnings per share guidance for 2016 in the range of $4.91–$5.19 from the prior range of $4.80–$5.05.

Upcoming Utility Releases

CMS Energy Corp. (CMS - Free Report) is scheduled to report second-quarter 2016 results on Jul 28.

American Electric Power Co., Inc. (AEP - Free Report) is scheduled to report second-quarter 2016 results on Jul 28.

Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to report second-quarter 2016 results on Jul 29.

Zacks Rank

DTE Energy currently has a Zacks Rank #2 (Buy).

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