We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is MDU Resources (MDU) Down 0.1% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for MDU Resources (MDU - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MDU Resources due for a breakout? 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.
MDU Resources Beats on Q1 Earnings, Tapers 2021 EPS View
MDU Resources reported first-quarter 2021 operating earnings of 26 cents per share, which beat the Zacks Consensus Estimate of 20 cents by 30%. The same increased 100% from the year-ago level. This upside was led by a strong performance of its construction services and pipeline businesses along with increased natural gas sales volumes.
Total Revenues
Total revenues came in at $1,227.9 million, up 2.6% from $1,197.4 million in the year-ago quarter.
Operating revenues in the electric, natural gas distribution and regulated pipeline improved 5.7% from the prior-year quarter to $442.4 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments inched up 0.9% from the year-ago quarter to $785.5 million.
Highlights of the Release
For the quarter under review, operating expenses of $1,142.7 million increased 0.2% from the prior-year period’s $1,140.3 million.
Operating income was $85.2 million, up 49.2% year over year.
The company’s interest expenses of $23.4 million were down 4.9% from $24.6 million in the prior-year quarter.
As of Mar 31, 2021, the construction services business had a backlog of $1.27 billion, on par with the prior-year quarter’s number.
As of Mar 31, 2021, the construction materials business had a backlog of $819 million, down from $905 million year over year. The construction materials business acquired an aggregates operation in Portland. Also, it got permission to expand operations at a Texas aggregate quarry.
The company’s North Bakken Expansion project was expected to receive the Federal Energy Regulatory Commission approval in the reported quarter. Due to the delay in regulatory nods, the utility has to adjust its construction schedule, which will postpone the in-service date of the project.
Financial Highlights
Cash and cash equivalents as of Mar 31, 2021 were $55.1 million compared with $59.5 million at 2020 end.
Long-term debt amounted to $2,251.7 million as of Mar 31, 2021 compared with $2,211.6 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first quarter of 2021 was $95.6 million compared with $79.3 million in the comparable period of 2020.
Guidance
MDU Resources narrowed its 2021 earnings per share guidance to $2-$2.15 from the prior expectation of $1.95-$2.15. This estimation is based on several assumptions, of which worth mentioning are normal weather and continued addition to the electric and natural gas customers at 1-2% rate, annually. In the long term, the utility expects earnings to grow 5-8% on an annual basis.
Moreover, it reduced its investment plans to $811 million from $826 million in the ongoing year. Also, it plans to invest $3,032 million during the 2021-2025 forecast period.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is MDU Resources (MDU) Down 0.1% Since Last Earnings Report?
It has been about a month since the last earnings report for MDU Resources (MDU - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MDU Resources due for a breakout? 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.
MDU Resources Beats on Q1 Earnings, Tapers 2021 EPS View
MDU Resources reported first-quarter 2021 operating earnings of 26 cents per share, which beat the Zacks Consensus Estimate of 20 cents by 30%. The same increased 100% from the year-ago level. This upside was led by a strong performance of its construction services and pipeline businesses along with increased natural gas sales volumes.
Total Revenues
Total revenues came in at $1,227.9 million, up 2.6% from $1,197.4 million in the year-ago quarter.
Operating revenues in the electric, natural gas distribution and regulated pipeline improved 5.7% from the prior-year quarter to $442.4 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments inched up 0.9% from the year-ago quarter to $785.5 million.
Highlights of the Release
For the quarter under review, operating expenses of $1,142.7 million increased 0.2% from the prior-year period’s $1,140.3 million.
Operating income was $85.2 million, up 49.2% year over year.
The company’s interest expenses of $23.4 million were down 4.9% from $24.6 million in the prior-year quarter.
As of Mar 31, 2021, the construction services business had a backlog of $1.27 billion, on par with the prior-year quarter’s number.
As of Mar 31, 2021, the construction materials business had a backlog of $819 million, down from $905 million year over year. The construction materials business acquired an aggregates operation in Portland. Also, it got permission to expand operations at a Texas aggregate quarry.
The company’s North Bakken Expansion project was expected to receive the Federal Energy Regulatory Commission approval in the reported quarter. Due to the delay in regulatory nods, the utility has to adjust its construction schedule, which will postpone the in-service date of the project.
Financial Highlights
Cash and cash equivalents as of Mar 31, 2021 were $55.1 million compared with $59.5 million at 2020 end.
Long-term debt amounted to $2,251.7 million as of Mar 31, 2021 compared with $2,211.6 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first quarter of 2021 was $95.6 million compared with $79.3 million in the comparable period of 2020.
Guidance
MDU Resources narrowed its 2021 earnings per share guidance to $2-$2.15 from the prior expectation of $1.95-$2.15. This estimation is based on several assumptions, of which worth mentioning are normal weather and continued addition to the electric and natural gas customers at 1-2% rate, annually. In the long term, the utility expects earnings to grow 5-8% on an annual basis.
Moreover, it reduced its investment plans to $811 million from $826 million in the ongoing year. Also, it plans to invest $3,032 million during the 2021-2025 forecast period.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.