It has been about a month since the last earnings report for DTE Energy Company (DTE - Free Report) . Shares have added about 3.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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, Retains 2017 View
DTE Energy 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%. Moreover, 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
DTE Energy Company Price and Consensus
VGM Scores
At this time, the stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth investors than those looking for value.
Outlook
The Zacks Consensus Estimate has been revised upward over the last 30 days. The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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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.
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It has been about a month since the last earnings report for DTE Energy Company (DTE - Free Report) . Shares have added about 3.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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, Retains 2017 View
DTE Energy 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%. Moreover, 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
DTE Energy Company Price and Consensus
VGM Scores
At this time, the stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth investors than those looking for value.
Outlook
The Zacks Consensus Estimate has been revised upward over the last 30 days. The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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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