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DTE Energy (DTE) Misses on Q4 Earnings, Sales Rise Y/Y
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DTE Energy Company (DTE - Free Report) reported fourth-quarter 2016 operating earnings per share (EPS) of 81 cents, which missed the Zacks Consensus Estimate of 84 cents by 3.6%. Operating earnings also declined 19.8% from the year-ago figure of $1.01.
On a GAAP basis, reported earnings came in at 73 cents per share, compared with 45 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.
For full-year 2016, the company reported operating EPS of $5.28, which was in line with the Zacks Consensus Estimate.
Total Revenue
Total revenue came in at $2.87 billion, which missed the Zacks Consensus Estimate of $3.28 billion by 12.5%. Reported revenues however improved 15.6% from the year-ago figure of $2.49 billion on account of higher contribution from both the utility and non-utility operations.
For full-year 2016, the company reported revenues of $10.63 billion, which missed the Zacks Consensus Estimate of $11.33 billion by 6.2%.
DTE Energy Company Price, Consensus and EPS Surprise
Operation and maintenance expenses in the reported quarter were $682 million, up 10.4% year over year.
Total operating expenses increased 9.35% to $2.57 billion. This was primarily due to higher fuel, purchased power and gas expenses at non-utility (24.2%), depreciation and amortization (20.7%) and taxes on other income (7.3%).
Operating income increased 124.6% to $301 million.
Segmental Highlights
Utility Operations
DTE Electric: Segment operating earnings were $75 million, down 25.7% year over year.
DTE Gas: The segment reported operating income of $42 million, up 7.7% year over year.
Non-Utility Operations
Gas Storage and Pipelines: The segment generated profits of $34 million, up from $28 million a year ago.
Power and Industrial Projects: The segment posted operating profits of $22 million, up from $12 million in the prior-year quarter.
Corporate and Other: The segment reported operating loss of $28 million, compared with the year-ago loss of $1 million.
Financial Update
Cash from operations in 2016 was $2.1 billion, with free cash flow of $1.3 billion.
The company utilized $0.5 billion to pay dividends and another $0.9 billion to redeem existing debts during the year.
Guidance
DTE Energy reiterated its 2017 guidance that was issued last November. The company expects to generate operating earnings guidance in the range of $5.15–$5.46 per share in 2017.
Peer Releases
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2016 adjusted earnings per share of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.
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DTE Energy (DTE) Misses on Q4 Earnings, Sales Rise Y/Y
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2016 operating earnings per share (EPS) of 81 cents, which missed the Zacks Consensus Estimate of 84 cents by 3.6%. Operating earnings also declined 19.8% from the year-ago figure of $1.01.
On a GAAP basis, reported earnings came in at 73 cents per share, compared with 45 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.
For full-year 2016, the company reported operating EPS of $5.28, which was in line with the Zacks Consensus Estimate.
Total Revenue
Total revenue came in at $2.87 billion, which missed the Zacks Consensus Estimate of $3.28 billion by 12.5%. Reported revenues however improved 15.6% from the year-ago figure of $2.49 billion on account of higher contribution from both the utility and non-utility operations.
For full-year 2016, the company reported revenues of $10.63 billion, which missed the Zacks Consensus Estimate of $11.33 billion by 6.2%.
DTE Energy Company Price, Consensus and EPS Surprise
DTE Energy Company Price, Consensus and EPS Surprise | DTE Energy Company Quote
Operating Update
Operation and maintenance expenses in the reported quarter were $682 million, up 10.4% year over year.
Total operating expenses increased 9.35% to $2.57 billion. This was primarily due to higher fuel, purchased power and gas expenses at non-utility (24.2%), depreciation and amortization (20.7%) and taxes on other income (7.3%).
Operating income increased 124.6% to $301 million.
Segmental Highlights
Utility Operations
DTE Electric: Segment operating earnings were $75 million, down 25.7% year over year.
DTE Gas: The segment reported operating income of $42 million, up 7.7% year over year.
Non-Utility Operations
Gas Storage and Pipelines: The segment generated profits of $34 million, up from $28 million a year ago.
Power and Industrial Projects: The segment posted operating profits of $22 million, up from $12 million in the prior-year quarter.
Corporate and Other: The segment reported operating loss of $28 million, compared with the year-ago loss of $1 million.
Financial Update
Cash from operations in 2016 was $2.1 billion, with free cash flow of $1.3 billion.
The company utilized $0.5 billion to pay dividends and another $0.9 billion to redeem existing debts during the year.
Guidance
DTE Energy reiterated its 2017 guidance that was issued last November. The company expects to generate operating earnings guidance in the range of $5.15–$5.46 per share in 2017.
Peer Releases
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2016 adjusted earnings per share of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.
Zacks Rank
DTE Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>