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MDU Resources Group Inc. (MDU - Free Report) delivered second-quarter 2020 operating earnings of 50 cents per share, which surged 61.3% from the year-ago quarter’s level. This upside was led by lower operation and maintenance expense, and higher returns on certain benefit plans.
Total Revenues
Total revenues in the second quarter were $1,362.9 million, up 4.5% from $1,303.6 million in the year-ago quarter.
Operating revenues in the electric, natural gas distribution and regulated pipeline inched up 2.1% to $241.3 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments increased 5.1% to $1,121.6 million.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
In the quarter under review, operating expenses of $1,224.6 million were up 1.5% from the prior-year quarter’s $1,206.3 million.
Operating income was $138.3 million, up 42.1% year over year.
The company’s interest expenses of $24.8 million were down 2.4% from $25.4 million in the prior-year quarter.
As of Jun 30, 2020, the construction services business had backlog of $1.31 billion, up 13.9% from $1.15 billion a year ago.
The construction materials business had a backlog of $875 million, down from $1.04 billion in the year-ago quarter.
Financial Highlights
Total debt amounted to $2,357 million as of Jun 30, 2020, down from $2,470 million as of Jun 30, 2019.
The company’s net cash provided by operating activities in the first six months of 2020 was $261.4 million compared with net cash used in operating activities of $22.9 million in the first six months of 2019.
Guidance
MDU Resources raised 2020 earnings per share guidance to $1.65-$1.85 from the prior projection of $1.50-$1.70 with the current Zacks Consensus Estimate being $1.60. This expectation is based on the assumption that the company will invest $614 million in capital projects.
Also, it anticipates Construction services revenues in the range of $1.90-$2.10 billion with margins compared to the 2019 levels and construction materials revenues in the band of $2.20-$2.40 billion with margins slightly higher than the 2019 reading.
ONE Gas Inc. (OGS - Free Report) delivered second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.
Sempra Energy’s (SRE - Free Report) second-quarter 2020 adjusted earnings per share came in at $1.65, which missed the Zacks Consensus Estimate of $1.66 by 0.6%.
ONEOK Inc (OKE - Free Report) posted second-quarter 2020 operating earnings of 32 cents per share, which lagged the Zacks Consensus Estimate of 50 cents by 36%.
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MDU Resources (MDU) Q2 Earnings & Revenues Increase Y/Y
MDU Resources Group Inc. (MDU - Free Report) delivered second-quarter 2020 operating earnings of 50 cents per share, which surged 61.3% from the year-ago quarter’s level. This upside was led by lower operation and maintenance expense, and higher returns on certain benefit plans.
Total Revenues
Total revenues in the second quarter were $1,362.9 million, up 4.5% from $1,303.6 million in the year-ago quarter.
Operating revenues in the electric, natural gas distribution and regulated pipeline inched up 2.1% to $241.3 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments increased 5.1% to $1,121.6 million.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote
Highlights of the Release
In the quarter under review, operating expenses of $1,224.6 million were up 1.5% from the prior-year quarter’s $1,206.3 million.
Operating income was $138.3 million, up 42.1% year over year.
The company’s interest expenses of $24.8 million were down 2.4% from $25.4 million in the prior-year quarter.
As of Jun 30, 2020, the construction services business had backlog of $1.31 billion, up 13.9% from $1.15 billion a year ago.
The construction materials business had a backlog of $875 million, down from $1.04 billion in the year-ago quarter.
Financial Highlights
Total debt amounted to $2,357 million as of Jun 30, 2020, down from $2,470 million as of Jun 30, 2019.
The company’s net cash provided by operating activities in the first six months of 2020 was $261.4 million compared with net cash used in operating activities of $22.9 million in the first six months of 2019.
Guidance
MDU Resources raised 2020 earnings per share guidance to $1.65-$1.85 from the prior projection of $1.50-$1.70 with the current Zacks Consensus Estimate being $1.60. This expectation is based on the assumption that the company will invest $614 million in capital projects.
Also, it anticipates Construction services revenues in the range of $1.90-$2.10 billion with margins compared to the 2019 levels and construction materials revenues in the band of $2.20-$2.40 billion with margins slightly higher than the 2019 reading.
Zacks Rank
MDU Resources carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
ONE Gas Inc. (OGS - Free Report) delivered second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.
Sempra Energy’s (SRE - Free Report) second-quarter 2020 adjusted earnings per share came in at $1.65, which missed the Zacks Consensus Estimate of $1.66 by 0.6%.
ONEOK Inc (OKE - Free Report) posted second-quarter 2020 operating earnings of 32 cents per share, which lagged the Zacks Consensus Estimate of 50 cents by 36%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>