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MDU Resources (MDU) Beats on Q2 Earnings, Gives '16 View

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MDU Resources Group Inc. (MDU - Free Report) reported second-quarter 2016 operating earnings of 24 cents per share, beating the Zacks Consensus Estimate of 20 cents by 20%. The reported figure also surged 84.6% year over year primarily on the back of a record 67% improvement in earnings at the Construction Materials and Services segment.

Earnings at the Construction segment were driven by higher construction sales due to higher jobs figures at the company’s service territories.

MDU Resources Group Inc. (MDU - Free Report) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany

Total Revenue

MDU Resources’ total revenue of $1,044 million missed the Zacks Consensus Estimate of $1,079 million by 3.2%. Revenues were, however, up 11.3% from $938 million in the prior-year quarter.

Quarterly Highlights

In the quarter under review, MDU Resources’ operating expenses amounted to $955 million, up 8.7% from $878.3 in the prior year quarter.

Operating income came in at $89 million in the second quarter, up 49%.

The company incurred interest expense of $22.3 million, compared with $23.4 million in the second quarter of 2015.

MDU RESOURCES Price, Consensus and EPS Surprise

MDU RESOURCES Price, Consensus and EPS Surprise | MDU RESOURCES Quote

Financial Condition

Total debt was $1,987 million as of Jun 30, 2016, down from $2,302 million as of Jun 30, 2015.

The company’s cash flow from operating activities in the first half of 2016 was $103 million, down from $194 million in the year-ago period.

Guidance

The company projects 2016 earnings from continuing operations in the range of $1.00–$1.15 per share and long-term annual earnings growth of 5–8%.

MDU Resources estimates capital expenditures of $369 million, $542 million and $516 million for 2016, 2017 and 2018, respectively, with a projection of total expenditure of $2,300 million over the 2016–2020 timeframe.

Peer Releases

ONEOK Inc. (OKE - Free Report) reported second-quarter 2016 operating earnings of 40 cents per share, missing the Zacks Consensus Estimate of 42 cents by 4.8%.

Vectren Corporation reported second-quarter 2016 operating earnings of 39 cents per share, missing the Zacks Consensus Estimate of 42 cents by 7.1%.

An Upcoming Peer Release

Clean Energy Fuels Corp. (CLNE - Free Report) is scheduled to report second-quarter earnings on Aug 9.The Zacks Consensus Estimate stands at a loss of 14 cents.

Zacks Rank

MDU Resourcescurrently has a Zacks Rank #3(Hold).

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