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MDU Resources (MDU) Misses on Q2 Earnings, Revenues Beat

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MDU Resources Group Inc. (MDU - Free Report) reported second-quarter 2017 operating earnings of 22 cents per share, missing the Zacks Consensus Estimate of 25 cents by 12%.

Reported earnings also fell 8.3% from the year-ago tally of 24 cents. This decrease can be attributed to weather-related delays and increased competition in its construction materials business.

Total Revenue

MDU Resources’ total revenue for the reported quarter was $1,067.6 million, surpassing the year-ago figure of $1,043.9 million by 2.3%.

Quarterly Highlights

In the quarter under review, MDU Resources’ operating expenses amounted to $987.9 million, up 3.5% from $954.9 in the prior-year quarter.

Operating income came in at $79.7 million in the second quarter, down 10.4%.

The company incurred interest expense of $20.8 million, compared with $22.3 million in second-quarter 2016.

Financial Condition

Total debt was $1,761 million as of Jun 30, 2017, down from $1,987 million as of Jun 30, 2016.

The company’s cash flow from operating activities as of Jun 30, 2017 was $139 million, up from $103 million in the year-ago period.

MDU Resources Group, Inc. Price, Consensus and EPS Surprise

 

Guidance

MDU Resources has reaffirmed 2017 earnings per share guidance in the range of $1.10–$1.25.

Capital expenditure in 2017 is estimated to be $515 million. The company aims to invest $2,223 million in 2017–2021 time period.

Upcoming Peer Releases

Sempra Energy (SRE - Free Report) is expected to report second-quarter 2017 results on Aug 4. The Zacks Consensus Estimate is pegged at 80 cents.

Vectren Corporation (VVC - Free Report) is expected to report second-quarter 2017 results on Aug 3. The Zacks Consensus Estimate is pegged at 43 cents.

South Jersey Industries, Inc. (SJI - Free Report) is expected to report second-quarter 2017 results on Aug 3. The Zacks Consensus Estimate is pegged at 4 cents.

Zacks Rank

MDU Resources Group Inc. carries a Zacks Rank #5 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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