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.
MDU Resources' (MDU) Q2 Earnings Miss Mark, Revenues Rise Y/Y
Read MoreHide Full Article
MDU Resources Group Inc. (MDU - Free Report) reported second-quarter 2021 operating earnings of 50 cents per share, which missed the Zacks Consensus Estimate of 53 cents by 5.7%. The same was on par with the year-ago level.
Total Revenues
Total revenues came in at $1,423.7 million, up 4.5% from $1,362.9 million in the year-ago quarter.
Operating revenues in the electric, natural gas distribution and regulated pipeline improved 8% from the prior-year quarter’s level to $260.6 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments moved up 3.7% from the year-ago quarter’s level to $1,163.1 million.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
For the quarter under review, operating expenses of $1,286 million increased 5% from the prior-year period’s $1,224.6 million.
Operating income was $137.7 million, down 0.4% year over year.
The company’s interest expenses of $23.4 million were down 5.6% from $24.8 million in the prior-year quarter.
As of Jun 30, 2021, the construction services business had a backlog of $1.32 billion compared to $1.31 billion onJun 30, 2020.
As of Jun 30, 2021, the construction materials business had a backlog of $912 million, up from $875 million year over year.
Financial Highlights
Cash and cash equivalents as of Jun 30, 2021 were $58 million compared with $59.5 million at 2020 end.
Long-term debt amounted to $2,335.5 million as of Jun 30, 2021 compared with $2,211.6 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first two quarters of 2021 was $182.8 million compared with $261.4 million in the comparable period of 2020.
Guidance
MDU Resources reaffirmed its 2021 earnings per share guidance at$2-$2.15. This estimateis based on several assumptions, of which worth mentioning are normal weather and a 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.
It reduced its investment plans to $806 million from $811 million in the ongoing year. It plans to invest $3,027 million during the 2021-2025 forecast period.
ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
ONEOK Inc (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.
Atmos Energy Corporation (ATO - Free Report) posted second-quarter 2021 operating earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 74 cents by 5.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
MDU Resources' (MDU) Q2 Earnings Miss Mark, Revenues Rise Y/Y
MDU Resources Group Inc. (MDU - Free Report) reported second-quarter 2021 operating earnings of 50 cents per share, which missed the Zacks Consensus Estimate of 53 cents by 5.7%. The same was on par with the year-ago level.
Total Revenues
Total revenues came in at $1,423.7 million, up 4.5% from $1,362.9 million in the year-ago quarter.
Operating revenues in the electric, natural gas distribution and regulated pipeline improved 8% from the prior-year quarter’s level to $260.6 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments moved up 3.7% from the year-ago quarter’s level to $1,163.1 million.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote
Highlights of the Release
For the quarter under review, operating expenses of $1,286 million increased 5% from the prior-year period’s $1,224.6 million.
Operating income was $137.7 million, down 0.4% year over year.
The company’s interest expenses of $23.4 million were down 5.6% from $24.8 million in the prior-year quarter.
As of Jun 30, 2021, the construction services business had a backlog of $1.32 billion compared to $1.31 billion onJun 30, 2020.
As of Jun 30, 2021, the construction materials business had a backlog of $912 million, up from $875 million year over year.
Financial Highlights
Cash and cash equivalents as of Jun 30, 2021 were $58 million compared with $59.5 million at 2020 end.
Long-term debt amounted to $2,335.5 million as of Jun 30, 2021 compared with $2,211.6 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first two quarters of 2021 was $182.8 million compared with $261.4 million in the comparable period of 2020.
Guidance
MDU Resources reaffirmed its 2021 earnings per share guidance at$2-$2.15. This estimateis based on several assumptions, of which worth mentioning are normal weather and a 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.
It reduced its investment plans to $806 million from $811 million in the ongoing year. It plans to invest $3,027 million during the 2021-2025 forecast period.
Zacks Rank
MDU Resources carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
ONEOK Inc (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.
Atmos Energy Corporation (ATO - Free Report) posted second-quarter 2021 operating earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 74 cents by 5.4%.