Back to top

Image: Bigstock

What's in Store for DTE Energy (DTE) this Earnings Season?

Read MoreHide Full Article

DTE Energy Company (DTE - Free Report) is slated to report third-quarter 2017 results on Oct 25, before the opening bell.

Last quarter, the company delivered a positive earnings surprise of 8.08%. Also, DTE Energy surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 11.45%.

Let’s see how things are shaping up at the company prior to this announcement.

Factors at Play

During the first quarter earnings call, DTE Energy said that it expects earnings to be lower in the third quarter and reiterated its projection during the second quarter earnings call. Currently, the company is of the view that third quarter will witness sequential earnings reduction by as much as $10 million to $20 million, including base rate increases. In line with this, the Zacks Consensus Estimate pegged at $1.59 per share reflects an annual decline of 18.9%.

On the brighter note, the company’s investment strategy aims at improving reliability and customer experience while maintaining affordability. In fact, the 50 megawatt (MW) Pinnebog Wind Park in Huron County, which became operational in the first quarter, is likely to contribute to the revenues in the to-be-reported quarter.

Again, improved weather conditions in its Electric Utility and Gas Utility segments in the third quarter are likely to boost the company’s top line in the quarter.

DTE Energy Company Price and EPS Surprise

DTE Energy Company Price and EPS Surprise | DTE Energy Company Quote

Earnings Whispers

Our proven model does not conclusively show that DTE Energy will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP: DTE Energy has an Earnings ESP of -4.40% as the Most Accurate estimate is $1.52, while the Zacks Consensus Estimate is pegged higher at $1.59. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DTE Energy carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) while going into an earnings announcement.

Stocks That Warrant a Look

Instead, here are a few players in the utility sector that have the right combination of elements to post an earnings beat this quarter.

NiSource, Inc. (NI - Free Report) will report third-quarter results on Nov 1. The company has an Earnings ESP of +7.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

EverSource Energy (ES - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank #3. The company is expected to report third-quarter results on Nov 1.

Avista Corporation (AVA - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #3. The company is slated to release third-quarter results on Nov 1.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NiSource, Inc (NI) - free report >>

DTE Energy Company (DTE) - free report >>

Avista Corporation (AVA) - free report >>

Eversource Energy (ES) - free report >>

Published in