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MDU Resources (MDU) Down 2.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for MDU Resources (MDU - Free Report) . Shares have lost about 2.6% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
MDU Resources' Q3 Earnings Miss Mark, Revenues Fall Y/Y
MDU Resources 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.
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 $57.3 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.
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.
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MDU Resources (MDU) Down 2.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for MDU Resources (MDU - Free Report) . Shares have lost about 2.6% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
MDU Resources' Q3 Earnings Miss Mark, Revenues Fall Y/Y
MDU Resources 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.
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 $57.3 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.
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.