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MDU Resources (MDU) Q1 Earnings Lag Estimates, Revenues Up

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MDU Resources Group Inc. (MDU - Free Report) delivered first-quarter 2019 operating earnings of 21 cents per share, which missed the Zacks Consensus Estimate of 24 cents by 12.5%. Operating earnings declined by a penny from the year-ago quarter’s level. The decline was caused by a larger loss incurred in the construction materials business.

Total Revenues

Total revenues in the first quarter were $1,091.2 million, up 11.7% from $976.3 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline as well as the midstream segments increased 3.5% to $439.6 million. Revenues in the non-regulated pipeline and midstream, construction materials and contracting, construction services as well as other segments increased 18% to $651.6 million.

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

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

Highlights of the Release

In the first quarter, operating expenses amounted to $1,027 million, up 13.2% from the prior-year quarter’s figure of $906.9 million.

Operating income was $64.2 million, down 7.5% year over year.

The company incurred interest expenses of $23.4 million, up from $20.5 million in the prior-year quarter.

As of Mar 31, 2019, the construction services business had backlog of $1.02 billion, up 48% from $675 million as of Mar 31, 2018.

As of Mar 31, 2019, the construction materials business had backlog of $943 million, up 36.3% from $692 million as of Mar 31, 2018.

Financial Highlights

Total debt amounted to $2,268 million as of Mar 31, 2019, up from $1,780 million as of Mar 31, 2018.

The company’s net cash flow from operating activities in the first quarter was $1.5 million compared with $105.8 million in the prior-year quarter.

Guidance

MDU Resources raised the lower end of previously provided guidance. The company currently expects 2019 earnings per share in the range of $1.40-$1.55, whose mid-point of $1.47 is below the current Zacks Consensus Estimate of $1.49.

Zacks Rank

MDU Resources carries a Zacks Rank #3(Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

ONE Gas, Inc (OGS - Free Report) recorded first-quarter 2019 operating earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.73 by 1.7%.

ONEOK Inc (OKE - Free Report) delivered first-quarter 2019 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 73 cents by 10.96%.

NextEra Energy, Inc (NEE - Free Report) generated first-quarter 2019 adjusted earnings of $2.20 per share, which beat the Zacks Consensus Estimate of $2.01 by 9.4%.

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