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DTE Energy Gears Up to Report Q2 Earnings: What's in the Cards?

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Key Takeaways

  • DTE is set to report Q2 earnings on July 29, with forecasts showing 5% sales and 7.7% EPS growth.
  • Severe weather events may have disrupted service and raised O&M costs, partially weighing on DTE's margins.
  • DTE completed an 80MW solar project, which is likely to support Q2 performance.

DTE Energy Company (DTE - Free Report) is scheduled to report second-quarter 2025 results on July 29, before market open.

The company delivered an earnings surprise of 6.06% in the last reported quarter. DTE also holds a four-quarter average earnings surprise of 11.84%.

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

DTE Energy Company Price and EPS Surprise

DTE Energy Company Price and EPS Surprise

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

Factors at Play Ahead of DTE’s Q2 Earnings

DTE’s service areas experienced mixed temperature patterns during the April-June quarter. While at the onset, below-normal temperatures prevailed, above-average temperature was witnessed in the later period. So, the overall impact of temperature fluctuations on DTE Energy’s second-quarter revenues is likely to have been moderate.

However, some parts of its service areas witnessed dust storms, heavy rainfall and several tornadoes, which are likely to have caused outages for some of DTE’s customers. Such outages are likely to have partially hurt the company’s overall top-line performance.

Solid sales growth expectations, along with DTE’s cost reduction efforts, are likely to have boosted the company’s second-quarter earnings. 

However, the aforementioned adverse weather conditions are likely to have caused damage to some of DTE’s infrastructure, pushing up its operation and maintenance expenses for restoration. This, along with higher rate base costs, is likely to have adversely impacted the overall bottom-line performance to some extent.

In April, DTE Energy completed the construction of its second solar park — an 80-megawatt project. We may expect renewable earnings generated from this project to have bolstered DTE’s second-quarter bottom line significantly.

DTE’s Q2 Expectations

The Zacks Consensus Estimate for DTE’s sales is pegged at $3.02 billion, which indicates year-over-year growth of 5%.

The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which calls for a year-over-year rise of 7.7%.

What the Zacks Model Unveils for DTE

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 odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: DTE has an Earnings ESP of -3.80%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, DTE carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here, we have mentioned a few players from the same industry that have the right combination of elements to beat earnings in the upcoming releases:

Entergy Corporation (ETR - Free Report) is scheduled to report its second-quarter 2025 results on July 30, before market open. It has an Earnings ESP of +7.06% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $3.13 billion, which indicates a 6% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 85 cents per share.

American Electric Power (AEP - Free Report) is scheduled to report its second-quarter 2025 results on July 30, before market open. It has an Earnings ESP of +10.63% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $4.76 billion, which implies a 3.9% increase from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $1.16 per share.

Xcel Energy Inc. (XEL - Free Report) is slated to report its second-quarter 2025 results on July 31, before market open. It has an Earnings ESP of +1.76% and a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for second-quarter sales is pegged at $3.31 billion, which calls for a 9.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 62 cents per share.

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