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DTE Energy Gears Up to Report Q3 Earnings: What's in the Cards?

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DTE Energy Company (DTE - Free Report) is scheduled to release third-quarter 2024 results on Oct. 24, before market open.

See the Zacks Earnings Calendar to stay ahead of market-making news.

This utility company delivered an earnings surprise of 19.17% in the last reported quarter.

The company’s trailing four-quarter earnings surprise is 0.77%, on average. Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider

DTE’s service territories experienced above-normal temperature patterns for the majority of the third quarter. This is likely to have boosted electricity demand from its customers for cooling purposes, which is expected to have contributed favorably to its quarterly revenues.
 

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, some parts of its service areas witnessed severe rain and tornadoes, in July, which are likely to have caused outages for some of DTE’s customers. This is likely to have adversely impacted the overall top-line performance to some extent.
 
Solid sales performance, along with cost reduction efforts, is likely to have boosted the company’s earnings growth. However, the abovementioned severe weather conditions, are likely to have caused damage to some of DTE’s infrastructure, thereby pushing up its operating expenses for restoration. This, along with higher rate base costs, is likely to have adversely impacted the overall bottom-line performance.

DTE Energy started building three new solar parks in Michigan, named Fish Creek, Mission Road and Little Trout, during the third quarter. We expect these projects to have expanded its renewable energy generation portfolio, which is likely to reflect in the upcoming third quarter results.

Q3 Expectations

The Zacks Consensus Estimate for DTE’s third-quarter sales is $3.02 billion, which indicates an increase of 4.6% from the year-ago number.

The consensus estimate for earnings is pegged at $1.80 per share, which implies an improvement of 25% from the prior-year quarter’s figure.

What Our Model Predicts

Our proven model does not conclusively predict an earnings beat for DTE Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is not the case here as seen below.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 2.

Stocks to Consider

Investors can consider the following players from the same industry, which have the right combination of elements to post an earnings beat in their quarterly results.

IDACORP, Inc. (IDA - Free Report) is scheduled to report its third-quarter results on Oct 31. It has an Earnings ESP of +0.57% and a Zacks Rank of 2 at present. You can see the complete list of Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for its third-quarter sales is pegged at $527.9 million, which indicates a 3.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings indicates year-over-year growth of 5.8%.

Evergy, Inc. (EVRG - Free Report) is scheduled to report its third-quarter results on Nov 7. It has an Earnings ESP of +1.03% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for its third-quarter sales is pegged at $1.67 billion, which indicates a 0.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings indicates year-over-year growth of 3.7%.
 
Eversource Energy (ES - Free Report) is scheduled to report its third-quarter results on Nov 5. It has an Earnings ESP of +3.95% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for its third-quarter sales is pegged at $3.01 billion, which indicates a 7.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings has increased 1.1% in the last 90 days.

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