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MDU Resources' (MDU) Q3 Earnings Miss Mark, Revenues Fall Y/Y
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MDU Resources Group Inc. (MDU - Free Report) reported third-quarter 2021 operating earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 79 cents by 13.9%. The same declined 10.5% from the year-ago level of 76 cents.
Total Revenues
Total revenues came in at $1,586 million, down 0.1% from $1,587.3 million in the year-ago quarter.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
Operating revenues in the electric, natural gas distribution and regulated pipeline improved 12.9% from the prior-year quarter’s level to $237.1 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments slid 2.1% from the year-ago quarter’s level to $1,348.9 million.
Highlights of the Release
For the quarter under review, operating expenses of $1,396.8 million increased 1% from the prior-year period’s $1,383.6 million.
Operating income was $189.2 million, down 7.1% year over year.
The company’s interest expenses of $23.4 million were down 1.3% from $23.7 million in the prior-year quarter.
As of Sep 30, 2021, the construction services business had a backlog of $1.27 billion compared to $1.28 billion on Sep 30, 2020.
As of Sep 30, 2021, the construction materials business had a backlog of $652 million, up from $571 million year over year.
Financial Highlights
Cash and cash equivalents as of Sep 30, 2021 were $57.2 million compared with $59.5 million at 2020 end.
Long-term debt amounted to $2,326.7 million as of Sep 30, 2021 compared with $2,211.6 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first three quarters of 2021 was $365.8 million compared with $481.8 million in the comparable period of 2020.
Guidance
MDU Resources adjusted its 2021 earnings per share guidance to $1.90-$2.05 from the prior expectation of $2-$2.15. This estimate is based on several assumptions, of which worth mentioning are normal weather and a continued addition to the electric and natural gas customer base 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 $775 million from $806 million in the ongoing year.
ONEOK Inc (OKE - Free Report) posted third-quarter 2021 operating earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 83 cents by 6%
ONE Gas Inc. (OGS - Free Report) reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.
Upcoming Release
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2021 operating earnings on Nov 10. The Zacks Consensus Estimate for the same is pegged at 37 cents per share.
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MDU Resources' (MDU) Q3 Earnings Miss Mark, Revenues Fall Y/Y
MDU Resources Group Inc. (MDU - Free Report) reported third-quarter 2021 operating earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 79 cents by 13.9%. The same declined 10.5% from the year-ago level of 76 cents.
Total Revenues
Total revenues came in at $1,586 million, down 0.1% from $1,587.3 million in the year-ago quarter.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote
Operating revenues in the electric, natural gas distribution and regulated pipeline improved 12.9% from the prior-year quarter’s level to $237.1 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments slid 2.1% from the year-ago quarter’s level to $1,348.9 million.
Highlights of the Release
For the quarter under review, operating expenses of $1,396.8 million increased 1% from the prior-year period’s $1,383.6 million.
Operating income was $189.2 million, down 7.1% year over year.
The company’s interest expenses of $23.4 million were down 1.3% from $23.7 million in the prior-year quarter.
As of Sep 30, 2021, the construction services business had a backlog of $1.27 billion compared to $1.28 billion on Sep 30, 2020.
As of Sep 30, 2021, the construction materials business had a backlog of $652 million, up from $571 million year over year.
Financial Highlights
Cash and cash equivalents as of Sep 30, 2021 were $57.2 million compared with $59.5 million at 2020 end.
Long-term debt amounted to $2,326.7 million as of Sep 30, 2021 compared with $2,211.6 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first three quarters of 2021 was $365.8 million compared with $481.8 million in the comparable period of 2020.
Guidance
MDU Resources adjusted its 2021 earnings per share guidance to $1.90-$2.05 from the prior expectation of $2-$2.15. This estimate is based on several assumptions, of which worth mentioning are normal weather and a continued addition to the electric and natural gas customer base 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 $775 million from $806 million in the ongoing year.
Zacks Rank
MDU Resources carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
ONEOK Inc (OKE - Free Report) posted third-quarter 2021 operating earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 83 cents by 6%
ONE Gas Inc. (OGS - Free Report) reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.
Upcoming Release
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2021 operating earnings on Nov 10. The Zacks Consensus Estimate for the same is pegged at 37 cents per share.