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Why Is DTE Energy (DTE) Up 4.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for DTE Energy (DTE - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is DTE Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

DTE Energy Lags Q4 Earnings, Invests Big in Natural Gas

DTE Energy Company reported fourth-quarter 2018 operating earnings per share (EPS) of 91 cents, which missed the Zacks Consensus Estimate of 92 cents by a penny. The reported figure also declined 27.8% from the year-ago quarter’s figure of $1.26.

On a GAAP basis, the company’s reported earnings came in at $1.05 per share compared with $1.60 in the prior-year quarter.

For 2018, DTE Energy’s operating EPS came in at $6.30, up 12.7% from the prior-year figure of $5.59. The figure, however, missed the Zacks Consensus Estimate of $6.31 by a penny.

Highlights of the Release

DTE Energy announced that the NEXUS Gas Transmission system, a DTE joint venture, signed an agreement to purchase Generation Pipeline — a midstream pipeline asset that provides natural gas supply to Northwest Ohio industrial customers.  Generation Pipeline is an existing 24-inch, 23-mile pipeline with current capacity to deliver 355 million cubic feet per day of clean-burning natural gas.

In the renewable energy space, the company expects new projects, including Pine River Wind Park in mid-Michigan, to drive investments of more than $1.7 billion in Michigan and double renewable energy capacity from 1,000 to 2,000 megawatts. Further, DTE Energy claims to have invested $1.7 billion with Michigan-based companies in 2018, exceeding its commitment to the Pure Michigan Business Connect local supplier initiative.

Operating net income in the reported quarter totaled $165 million compared with $224 million in the year-ago quarter.

Segmental Details

Utility Operations

DTE Electric:  The segment’s operating earnings totaled $60 million, down from $141 million registered in the prior-year quarter.

DTE Gas: The segment generated operating earnings of $62 million in the fourth quarter compared with $54 million in the prior-year quarter.

Non-Utility Operations: The operating earnings from Non-Utility operations were $78 million compared with $67 million in the year-ago quarter.


DTE Energy reiterated its 2019 operating earnings per share guidance in the range of $5.97-$6.33.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

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