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DTE Energy (DTE) to Report Q1 Earnings: What's in the Offing?

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DTE Energy Company (DTE - Free Report) is set to report first-quarter 2022 results on Apr 28 before market open.   

In the last reported quarter, the company delivered an earnings surprise of 11.70%. The company boasts a four-quarter average earnings surprise of 9.18%.

Let's take a closer look at the factors that are likely to get reflected in DTE Energy’s upcoming results.

Factors to Consider

In February 2022, the company’s service territories witnessed near-normal snowfall. This is likely to have contributed to its top-line performance in the first quarter. 

DTE Energy Company Price and EPS Surprise

DTE Energy Company Price and EPS Surprise

DTE Energy Company price-eps-surprise | DTE Energy Company Quote

However, in January and March, DTE Energy’s customers observed wet weather patterns accompanied by precipitation. Such weather pattern tends to lower electricity demand and is likely to have hampered revenue growth in the soon-to-be-reported quarter. 

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.46 billion, indicating an 8.5% decline from the year-ago quarter’s reported figure.

From the cost perspective, higher operating and manufacturing expenses and rate-based growth costs may have negatively impacted the bottom line of DTE Energy in the first quarter. Moreover, a snow storm took place during the first quarter, affecting the company’s service territories. This might have damaged the utility’s infrastructure, thereby pushing up its expenses. This might have hurt its quarterly earnings.

The Zacks Consensus Estimate for DTE Energy’s first-quarter earnings is pegged at $2.06 per share, suggesting a 15.6% decline from the year-ago quarter’s reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for DTE this time. 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. However, this is not the case here.

DTE Energy has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks to Consider

Here are three Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

The Southern Company (SO - Free Report) has an Earnings ESP of +2.16% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 4%.

The Zacks Consensus Estimate for The Southern Company’s first-quarter revenues and earnings is pegged at $5.95 billion and 89 cents per share, respectively. SO has a four-quarter average earnings surprise of 6.33%.

Atmos Energy (ATO - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 7.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Atmos Energy’s first-quarter revenues and earnings is pegged at $1.49 billion and $2.36, respectively. ATO has a four-quarter average negative earnings surprise of 4.40%.

Dominion Energy (D - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.17, respectively. D has a four-quarter average earnings surprise of 1.09%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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