DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share (EPS) of $1.79, which surpassed the Zacks Consensus Estimate of $1.57 by 14%. Operating earnings also grew 17.8% from the year-ago figure of $1.52.
On a GAAP basis, reported earnings came in at $2.23 per share compared with $1.37 reported in the prior-year quarter. The difference 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 $3.24 billion, which surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. However, reported revenues increased 26.1% from the year-ago figure of $2.57 billion on account of higher contribution from both the utility and non-utility operations.
Operating Update
Operation and maintenance expenses in the reported quarter were $600 million, up 16.3% year over year.
Total operating expenses increased 22.1% to $2.67 billion. This was primarily due to higher fuel, purchased power and gas expenses at non-utility (52.1%), depreciation and amortization (8.7%) and taxes on other income (10.1%).
Operating income increased 49.3% to $569 million.
Segmental Highlights
Utility Operations
DTE Electric: The segment’s operating earnings were $106 million, down 16.5% year over year.
DTE Gas: The segment reported operating income of $107 million, up 23% year over year.
Non-Utility Operations
Gas Storage and Pipelines: The segment generated profits of $45 million, up from $30 million a year ago.
Power and Industrial Projects: The segment posted operating profits of $30 million, up from $21 million in the prior-year quarter.
Corporate and Other: The segment reported operating income of $16 million as against the year-ago loss of $7 million.
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.
Zacks Rank
DTE Energy currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Releases
American Electric Power Co., Inc. (AEP - Free Report) is a Zacks Rank #3 company. The Zacks Consensus Estimate is pegged at 97 cents and the company is scheduled to release first-quarter 2017 earnings on Apr 27.
CMS Energy Corporation (CMS - Free Report) , another Zacks Rank #3 stock, is scheduled to release first-quarter earnings on May 1. The Zacks Consensus Estimate is pegged at 65 cents.
Edison International (EIX - Free Report) is expected to release first-quarter earnings on May 1. The Zacks Consensus Estimate is pegged at 86 cents. This company also carries a Zacks Rank #3.
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DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share (EPS) of $1.79, which surpassed the Zacks Consensus Estimate of $1.57 by 14%. Operating earnings also grew 17.8% from the year-ago figure of $1.52.
On a GAAP basis, reported earnings came in at $2.23 per share compared with $1.37 reported in the prior-year quarter. The difference 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 $3.24 billion, which surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. However, reported revenues increased 26.1% from the year-ago figure of $2.57 billion on account of higher contribution from both the utility and non-utility operations.
Operating Update
Operation and maintenance expenses in the reported quarter were $600 million, up 16.3% year over year.
Total operating expenses increased 22.1% to $2.67 billion. This was primarily due to higher fuel, purchased power and gas expenses at non-utility (52.1%), depreciation and amortization (8.7%) and taxes on other income (10.1%).
Operating income increased 49.3% to $569 million.
Segmental Highlights
Utility Operations
DTE Electric: The segment’s operating earnings were $106 million, down 16.5% year over year.
DTE Gas: The segment reported operating income of $107 million, up 23% year over year.
Non-Utility Operations
Gas Storage and Pipelines: The segment generated profits of $45 million, up from $30 million a year ago.
Power and Industrial Projects: The segment posted operating profits of $30 million, up from $21 million in the prior-year quarter.
Corporate and Other: The segment reported operating income of $16 million as against the year-ago loss of $7 million.
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.
Zacks Rank
DTE Energy currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Releases
American Electric Power Co., Inc. (AEP - Free Report) is a Zacks Rank #3 company. The Zacks Consensus Estimate is pegged at 97 cents and the company is scheduled to release first-quarter 2017 earnings on Apr 27.
CMS Energy Corporation (CMS - Free Report) , another Zacks Rank #3 stock, is scheduled to release first-quarter earnings on May 1. The Zacks Consensus Estimate is pegged at 65 cents.
Edison International (EIX - Free Report) is expected to release first-quarter earnings on May 1. The Zacks Consensus Estimate is pegged at 86 cents. This company also carries a Zacks Rank #3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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