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DTE Energy (DTE) to Report Q2 Earnings: What's in the Cards?

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DTE Energy Corporation (DTE - Free Report) is set to report second-quarter 2021 results on Jul 27, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 12.96%.

In the trailing four quarters, the company came up with a positive earnings surprise of 16.91%, on average.

Let's take a closer look at the factors influencing DTE Energy’s upcoming results.

Factors to Consider

During maximum part of the second quarter, the company’s service territories experienced above-normal temperatures. Alongside, its service territories witnessed significant precipitation levels throughout the quarter, resulting in wet weather conditions. These are likely to have resulted in higher electricity demand for cooling purposes, which in turn are likely to have boosted DTE Energy’s top line in the second quarter.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.71 billion, indicating a 4.9% growth from the year-ago quarter’s reported figure.

However, DTE Energy’s service areas experienced severe weather patterns during some time of the second quarter, accompanied with heavy rainfall, strong winds, hail storms, along with flooding. This might have caused outage for some of its customers, which might have had pushed up the company’s storm restoration expenses thereby adversely impacting its second-quarter earnings results.

Moreover, in the second quarter of 2020, DTE Electric experienced a reversal in non-qualified benefit plan losses. An expected absence of this gain in the second quarter of 2021, might have caused an year over year decline in the company’s bottom line performance.

For the second quarter, the Zacks Consensus Estimate for earnings per share is pegged at $1.31, which indicates a 14.4% decline from the figure reported in the year-ago quarter.

DTE Energy Company Price and EPS Surprise

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 0.00%. 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 #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat this season.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +0.34% and holds a Zacks Rank #3.

NextEra Energy (NEE - Free Report) has an Earnings ESP of +0.73% and carries a Zacks Rank #3.

Sempra Energy (SRE - Free Report) has an Earnings ESP of +2.05% and carries a Zacks Rank #3.

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