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) Q4 Earnings Miss Estimates, Sales Rise Y/Y
Read MoreHide Full Article
MDU Resources Group Inc. (MDU - Free Report) reported fourth-quarter 2021 operating earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate of 55 cents by 23.6%. The bottom line narrowed 25% from the year-ago earnings of 56 cents per share. MDU Resources’ 2021 EPS were $1.87, down 4.1% from $1.95 in 2020.
Total Revenues
Total revenues came in at $1,443.1million, up 4.18% from $1,385.2 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 18.8% from the prior-year quarter’s level to $450.3 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments slid 1.3% from the year-ago quarter’s level to $992.8 million.
Highlights of the Release
Total operating expenses for the fourth quarter amounted to $1,320.9 million, up 6.6% from the year-ago quarter’s $1,239.3 million, due to an increase in operation and maintenance expenses by 1.3% along with the higher manufacturing cost.
Operating income for the reported quarter was down 16.2% year over year to $122.2 million.
MDU Resources’ interest expenses of $23.8 million were up 1.7% from $23.4 million in the prior-year quarter.
As of Dec 31, 2021, the construction services business had a backlog of $1.38 billion compared with $1.27 billion on Dec 31, 2020.
As of Dec 31, 2021, the construction materials business had a backlog of $708 million, up from $673 million year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2021, were $54.2 million compared with $59.6 million at the 2020 end.
Total debt amounted to $2,742 million as of Dec 31, 2021, compared with $2,263 million on Dec 31, 2020.
MDU Resources’ net cash provided by operating activities was $495.8 million in 2021, down 35.5%, compared with $768.4 million in 2020.
Guidance
MDU Resources initiated 2022 earnings guidance in the range of $2.00-$2.15 per share. This estimate is based on several assumptions, of which worth mentioning are normal weather and continued addition to the electric and natural gas customer base at a 1-2% rate annually.
In the long term, the utility reiterated EPS to grow 5-8% on an annual basis.
MDU Resources plans to invest $726 million in 2022 and $3,044 million for five years from 2022 to 2026.Capital spending was associated with a focus on infrastructure development, grid safety, reliability and resiliency.
Zacks Rank
MDU Resources currently has a Zacks Rank #4 (Sell).
Entergy Corp. (ETR - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 23 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 68 cents.
Entergy’s long-term (three to five years) earnings growth is currently pegged at 1%. The Zacks Consensus Estimate for ETR’s 2022 earnings implies year-over-year growth of 5.85%.
ONE Gas Inc. (OGS - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 23 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $1.12.
ONE Gas’ long-term earnings growth is currently pegged at 5%. The Zacks Consensus Estimate for OGS’s 2022 earnings implies year-over-year growth of 5.9%.
Sempra Energy (SRE - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 25 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $2.02.
Sempra Energy’s long-term earnings growth is currently pegged at 5.28%. The Zacks Consensus Estimate for SRE’s 2022 earnings implies year-over-year growth of 1.65%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
MDU Resources (MDU) Q4 Earnings Miss Estimates, Sales Rise Y/Y
MDU Resources Group Inc. (MDU - Free Report) reported fourth-quarter 2021 operating earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate of 55 cents by 23.6%. The bottom line narrowed 25% from the year-ago earnings of 56 cents per share. MDU Resources’ 2021 EPS were $1.87, down 4.1% from $1.95 in 2020.
Total Revenues
Total revenues came in at $1,443.1million, up 4.18% from $1,385.2 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 18.8% from the prior-year quarter’s level to $450.3 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments slid 1.3% from the year-ago quarter’s level to $992.8 million.
Highlights of the Release
Total operating expenses for the fourth quarter amounted to $1,320.9 million, up 6.6% from the year-ago quarter’s $1,239.3 million, due to an increase in operation and maintenance expenses by 1.3% along with the higher manufacturing cost.
Operating income for the reported quarter was down 16.2% year over year to $122.2 million.
MDU Resources’ interest expenses of $23.8 million were up 1.7% from $23.4 million in the prior-year quarter.
As of Dec 31, 2021, the construction services business had a backlog of $1.38 billion compared with $1.27 billion on Dec 31, 2020.
As of Dec 31, 2021, the construction materials business had a backlog of $708 million, up from $673 million year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2021, were $54.2 million compared with $59.6 million at the 2020 end.
Total debt amounted to $2,742 million as of Dec 31, 2021, compared with $2,263 million on Dec 31, 2020.
MDU Resources’ net cash provided by operating activities was $495.8 million in 2021, down 35.5%, compared with $768.4 million in 2020.
Guidance
MDU Resources initiated 2022 earnings guidance in the range of $2.00-$2.15 per share. This estimate is based on several assumptions, of which worth mentioning are normal weather and continued addition to the electric and natural gas customer base at a 1-2% rate annually.
In the long term, the utility reiterated EPS to grow 5-8% on an annual basis.
MDU Resources plans to invest $726 million in 2022 and $3,044 million for five years from 2022 to 2026.Capital spending was associated with a focus on infrastructure development, grid safety, reliability and resiliency.
Zacks Rank
MDU Resources currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Entergy Corp. (ETR - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 23 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 68 cents.
Entergy’s long-term (three to five years) earnings growth is currently pegged at 1%. The Zacks Consensus Estimate for ETR’s 2022 earnings implies year-over-year growth of 5.85%.
ONE Gas Inc. (OGS - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 23 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $1.12.
ONE Gas’ long-term earnings growth is currently pegged at 5%. The Zacks Consensus Estimate for OGS’s 2022 earnings implies year-over-year growth of 5.9%.
Sempra Energy (SRE - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 25 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $2.02.
Sempra Energy’s long-term earnings growth is currently pegged at 5.28%. The Zacks Consensus Estimate for SRE’s 2022 earnings implies year-over-year growth of 1.65%.