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Why Is MDU Resources (MDU) Up 5.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for MDU Resources (MDU - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is MDU Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

MDU Resources Q1 Earnings Miss Estimates, Sales Rise Y/Y

MDU Resources Group Inc. reported first-quarter 2022 operating earnings per share (EPS) of 16 cents, which missed the Zacks Consensus Estimate of 17 cents by a penny. The bottom line also decreased by 38.5% from the year-ago earnings of 26 cents per share.

Total Revenues

Total revenues came in at $1,416.6 million, up 15.4% from $1,227.9 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline improved by 25% from the prior-year quarter’s level to $553.5 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments improved by 9.9% from the year-ago quarter are level to $863.1 million.

Highlights of the Release

Total operating expenses for the first quarter amounted to $1,349.2 million, up 18.1% from the year-ago quarter’s $1,142.7 million, due to an increase in operation and maintenance expenses by 11.9% along with the higher manufacturing cost.

Operating income for the reported quarter was down 20.9% year over year to $67.4 million.

MDU Resources’ interest expenses of $25.3 million were up 8.1% from $23.4 million in the prior-year quarter.

As of Mar 31, 2022, the construction services business had a backlog of $1.67 billion,up 31% from the year-ago quarter’s $1.27 billion.

As of Mar 31, 2022, the construction materials business had a backlog of $940 million, up 15% from $819 million year over year.

Financial Highlights

Cash and cash equivalents as of Mar 31, 2022 were $64.9 million compared with $54.2 million on Dec 31, 2021.

Total debt amounted to $2,848 million as of Mar 31, 2022 compared with $2,742 million on Dec 31, 2021.

MDU Resources’ net cash provided by the operating activities in the first three months of 2022 was $112.4 million compared with $95.6 in the prior-year quarter.

Guidance

MDU Resources affirmed 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 for the remainder of 2022 and continued addition to the electric and natural gas customer base at a 1% to 2% rate annually.

MDU Resources plans to invest $770 million in capital projects in 2022. The capital program is expected to be largely funded by operating cash flows in the range of $550-$600 million.
 

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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