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MDU Resources (MDU) Earnings Beat Q2 Estimates, Revenues Up

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MDU Resources Group Inc. (MDU - Free Report) delivered second-quarter 2019 operating earnings of 32 cents per share, which beat the Zacks Consensus Estimate of 25 cents by 28%. Operating earnings increased 45.4% from the year-ago quarter’s level. The upside was driven by strong operational performance as well as the positive impact of organic and acquisition growth.

Total Revenues

Total revenues in the second quarter amounted to $1,303.6 million, up 22.4% from $1,064.6 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline as well as the midstream segments increased 4.2% to $236.3 million. Revenues in the non-regulated pipeline and midstream, construction materials and contracting, construction services as well as other segments increased 27.4% to $1,067.3 million.

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

 

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

MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote

 

Highlights of the Release

In the second quarter, operating expenses amounted to $1,206.3 million, up 21.7% from the prior-year quarter’s figure of $990.6 million.

Operating income was $97.3 million, up 31.5% year over year.

The company incurred interest expenses of $25.4 million, up from $20.8 million in the prior-year quarter.

In the second quarter, the construction services business had backlog of $1.15 billion, up 30% from $888 million in 2018.

As of Jun 30, 2019, the construction materials business had backlog of $1.04 billion, up 42% from $731 million in 2018.

Financial Highlights

Total debt amounted to $2,470 million as of Jun 30, up from $1,853 million as of Jun 30, 2018.

The company’s net cash used in operating activities in the first six months of 2019 was $22.9 million compared with net cash provided by operating activities of $176.6 million in the first six months of 2018.

Guidance

MDU Resources raised previously provided guidance for 2019 earnings per share (EPS), which was forecast in the range of $1.40-$1.55. The company currently expects 2019 EPS in the range of $1.45-$1.60, whose mid-point of $1.53 is higher than 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 second-quarter 2019 operating earnings of 46 cents per share, which beat the Zacks Consensus Estimate of 41 cents by 12.2%.

ONEOK Inc (OKE - Free Report) reported second-quarter 2019 operating earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 7.14%

NextEra Energy (NEE - Free Report) reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.

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