DTE Energy (DTE) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research Published on October 21, 2021

DTE Energy Company (DTE - Free Report) is slated to report third-quarter 2021 results on Oct 27, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 18.06%.

The company has a trailing four-quarter earnings surprise of 17.23%, on average.

Factors to Note

During most part of the third quarter, the company’s service territories witnessed warmer than normal temperatures. This is likely to have boosted demand forelectricity among the company’s customers for cooling purposes.Its service territories also experienced significant precipitation levels throughout the quarter, resulting in wet weather conditions.

Although warm weather and higher precipitation may have positively impacted the to-be-reported quarter’s performance, a serious drought condition in some parts of its service territories might have weighed on the same. This is because utility companies are heavily dependent on water for cooling down systems when generating electricity, thus a serious drought condition may have hindered its supply of electricity to customers.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.21 billion, indicating a declineof 2.2% from the year-ago quarter.

During the third quarter, DTE Energy’s service area experienced five tornadoes and eight storms with tropical force wind gusts. Such severe weather conditions often damageelectric poles and infrastructure of utility providers. This might have pushed up the company’s operating expenses for restoration and repairing, thereby might have impacted itsperformance in the to-be-reported quarter.

The Zacks Consensus Estimate for DTE Energy’s third-quarter earnings stands at $1.77 per share, indicating a decline of 32.2% from the year-ago quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for DTE Energy this time around. 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. This is the case here as you will see.

Earnings ESP: The company has an Earnings ESP of +4.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Other Stocks to Consider

Here are three other Utility players you may want to consider, as these too have the right combination of elements to post an earnings beat this season:

Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank #3.

AES Corporation (AES - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank #3.

Avangrid, Inc (AGR - Free Report) has an Earnings ESP of +8.55% and a Zacks Rank #3.

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