Back to top

Image: Bigstock

DTE Energy (DTE) to Post Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

DTE Energy Corporation (DTE - Free Report) is set to report second-quarter 2019 results on Jul 24, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 5.13%.

In the trailing four quarters, the company came up with average positive earnings surprise of 12.24%.

Let's take a closer look at the factors influencing DTE Energy’s upcoming results.

Factors to Consider

In beginning of the second quarter of 2019, DTE Energy’s service territories experienced below-average temperature along with freezing weather conditions. Furthermore, its service territories experienced significantly wet precipitation throughout the quarter. These cumulatively indicate a higher electricity demand, which in turn should boost DTE Energy’s revenues in the to-be-reported quarter.

Furthermore, from the context of its non-utility businesses, the company announced the execution of a binding letter agreement with WGL Midstream, Inc. to acquire 30% of Stonewall Gas Gathering for $275.3 million during the quarter. Further updates on this deal can be expected along with the second-quarter results.

Meanwhile, tax equity transactions for the company’s Reduced Emissions Fuel (REF) business are expected to hit earnings growth. In line with this, the Zacks consensus estimate for DTE Energy’s earnings of $1.22 per share for the to-be-reported quarter implies a decline of 10.3% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively show that DTE Energy is likely to beat on earnings this quarter. This 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. This is not the case here, as you will see below.

Earnings ESP: DTE Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

DTE Energy Company Price and EPS Surprise

Stocks to Consider

Here are a few companies from the Utilities sector that have the right combination of elements to post an earnings beat this quarter.

Entergy Corp. (ETR - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #2. The company is expected to release second-quarter 2019 results
on Jul 31.

The Southern Company (SO - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results
on Jul 31.

NextEra Energy, Inc. (NEE - Free Report) has an Earnings ESP of +1.63% and a Zacks Rank #3. The company is scheduled to release second-quarter results on
Jul 24.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Published in