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Why Is DTE Energy (DTE) Up 0.9% Since Last Earnings Report?

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A month has gone by since the last earnings report for DTE Energy (DTE - Free Report) . Shares have added about 0.9% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.

DTE Energy Earnings Beats Estimates in Q1, Up Y/Y

DTE Energy Company reported first-quarter 2021 operating earnings per share (EPS) of $2.44, which surpassed the Zacks Consensus Estimate of $2.16 by 13%. The bottom line improved 47% from $1.66 in the year-ago quarter.

Highlights of the Release

Operating net income in the reported quarter totaled $473 million compared with $320 million in the year-ago quarter.

During the quarter, the company received regulatory approval for Phase 2 of its Electric Vehicle Charging Forward program. The utility also announced voluntary greenhouse gas reduction program for DTE Gas customers.

Segmental Details

Utility Operations

DTE Electric:  The segment’s operating earnings amounted to $1.07 per share, down from 49 cents in the prior-year quarter.

DTE Gas: The segment recorded operating earnings of 87 cents per share compared with 63 cents in the prior-year quarter.

Non-Utility Operations: Operating earnings in the segment totaled 67 cents per share compared with 60 cents in the year-ago quarter.

2021 Guidance

DTE Energy reaffirmed its 2021 operating earnings per share guidance in the range of $6.88-$7.26. The Zacks Consensus Estimate of $7.14 for the company’s full-year earnings lies above the midpoint of its guidance.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

At this time, DTE Energy has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, 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 A. 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 this revision 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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