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DTE Energy (DTE) Up 0.5% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for DTE Energy (DTE - Free Report) . Shares have added about 0.5% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important drivers.

DTE Energy Q2 Earnings Beat, Operating Income Rises

DTE Energy Company (DTE - Free Report) reported second-quarter 2020 operating earnings per share (EPS) of $1.53, which beat the Zacks Consensus Estimate of $1.31 by 16.8%.

The company reported GAAP earnings of $1.44 per share, which came in 45.5% higher than the year-ago quarter’s 99 cents.

Highlights of the Release

Operating net income in the reported quarter totaled $277 million compared with $183 million in the year-ago quarter.

The company partnered with General Motors on renewable energy investment, which will enable it to supply enough clean energy to General Motor’s Southeast Michigan facilities by 2023.

DTE Energy has invested more than $1.1 billion in Michigan-based companies in the first half of 2020, executing its commitment to the Pure Michigan Business Connect local supplier initiative.

Segmental Details

DTE Electric:  The segment’s operating earnings amounted to $1.13 per share, up from 73 cents in the prior-year quarter.

DTE Gas: The segment recorded operating earnings of 5 cents per share compared with 2 cents in the prior-year quarter.

Non-Utility Operations: Operating earnings in the segment totaled 53 cents per share compared with 40 cents in the year-ago quarter.

2020 Guidance

DTE Energy reaffirmed its 2020 operating earnings per share guidance in the range of $6.47-$6.75. The Zacks Consensus Estimate of $6.59 lies below the midpoint of the guided range.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -6.04% due to these changes.

VGM Scores

Currently, DTE Energy has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, DTE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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