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DTE Energy (DTE) to Report Q4 Earnings: What's in the Cards?

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DTE Energy Corporation (DTE - Free Report) is set to report fourth-quarter 2020 results on Feb 19, before market open. In the last reported quarter, the company delivered an earnings surprise of 26.70%.

In the trailing four quarters, DTE Energy came up with an earnings surprise of 10.35%, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

At the onset of the October-December 2020 quarter, the company’s service territories experienced mixed temperatures. However, DTE Energy’s service territories witnessed warmer-than-normal temperatures during the months of November and December, which might have negatively impacted fourth-quarter sales due to decreased electricity usage in the region.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.94 billion, indicating a 6.6% decline from the year-ago quarter’s reported figure.

In December, a handful of snowstorms affected the Midwestern U.S., within which DTE Energy’s service territory, Michigan, is located. This might have caused some outage for the company’s customers causing disrupted electricity flow. Such severe conditions are also expected to have extensively damaged the utility provider’s electric poles and infrastructure, thereby causing DTE Energy to bear huge expenses for the resultant restoration work. This is expected to have pushed up the company’s quarterly expenses, thereby hurting the bottom line.

For the fourth quarter, the Zacks Consensus Estimate for earnings per share is pegged at $1.33, which indicates a 1.5% decline from the figure reported in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict 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 not the case here.

Earnings ESP: DTE Energy has an Earnings ESP of -6.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

DTE Energy Company Price and EPS Surprise

Stocks to Consider

Here are a few stocks from the Utilities sector that are yet to release their Q4 results and possess the right combination to deliver an earnings beat.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3.

Pacific Gas & Electric Company (PCG - Free Report) has an Earnings ESP of +10.53% and a Zacks Rank #3.

Public Service Enterprise Group (PEG - Free Report) has an Earnings ESP of +4.81% and a Zacks Rank #3.

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