Back to top

Image: Bigstock

Why Is DTE Energy (DTE) Up 4.2% Since Last Earnings Report?

Read MoreHide Full Article

A month has gone by since the last earnings report for DTE Energy (DTE - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is DTE Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

DTE Energy Beats on Q1 Earnings, Invests in Renewables

DTE Energy Company reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%. The figure also increased 7.3% from $1.91 reported in the year-ago quarter.

On a GAAP basis, the company’s reported earnings came in at $2.19 per share compared with $2.00 in the prior-year quarter.

Highlights of the Release

During the first quarter of 2019, DTE Energy announced the opening of the Pine River Wind Park. With 65 turbines, it is the largest wind park in Michigan and also the company’s most cost-effective wind project till date.

Also, during the quarter, the company filed an Integrated Resource Plan (IRP), intending to reduce carbon emissions by 32% by 2023, 50% by 2030, and wrap it up with an 80% cut by 2040 instead of 2050. DTE Energy will also invest $2 billion in renewables by 2024, doubling the company's renewable energy production over the next five years.

Operating net income in the reported quarter totaled $374 million compared with $342 million in the year-ago quarter.

Segmental Details

Utility Operations

DTE Electric: The segment’s operating earnings totaled $147 million, up from $142 million registered in the prior-year quarter.

DTE Gas: The segment generated operating earnings of $151 million in the quarter compared with $111 million in the prior-year quarter.

Non-Utility Operations: The operating earnings from Non-Utility operations were $79 million compared with $105 million in the year-ago quarter.

Guidance

DTE Energy reaffirmed its 2019 operating earnings per share guidance of $5.97-$6.33.

 
On a GAAP basis, the company’s reported earnings came in at $2.19 per share compared with $2.00 in the prior-year quarter.
 
Highlights of the Release
 
During the first quarter of 2019, DTE Energy announced the opening of the Pine River Wind Park. With 65 turbines, it is the largest wind park in Michigan and also the company’s most cost-effective wind project till date.
 
Also, during the quarter, the company filed an Integrated Resource Plan (IRP), intending to reduce carbon emissions by 32% by 2023, 50% by 2030, and wrap it up with an 80% cut by 2040 instead of 2050. DTE Energy will also invest $2 billion in renewables by 2024, doubling the company's renewable energy production over the next five years

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months.

VGM Scores

At this time, DTE Energy has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

DTE Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DTE Energy Company (DTE) - free report >>

Published in