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Why Is DTE Energy (DTE) Down 1.9% Since Last Earnings Report?

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A month has gone by since the last earnings report for DTE Energy (DTE - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.

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

DTE Energy Misses on Q3 Earnings, Hikes '19 EPS View

DTE Energy Company reported third-quarter 2019 operating earnings per share of $1.91, which missed the Zacks Consensus Estimate of $2 by 4.7%. The bottom line also declined 11.5% from $2.13 in the year-ago quarter.

The year-over-year downside can be attributable to severe storm activities that resulted in increased expenses for the company related to electricity restoration.

Highlights of the Release

During the quarter, the Michigan Public Service Commission provided conditional approval to DTE Energy's proposed purchase of three new Michigan wind parks, enhancing its renewable energy portfolio by almost 50% and addressing its commitment to provide clean, affordable and reliable power to its customers.

The company inked an agreement to acquire a midstream gathering and lateral system, which will enhance its Midstream's business and provide access to the growing Gulf Coast markets.

Operating net income in the reported quarter totaled $351 million compared with $388 million in the year- ago quarter.

Segmental Details

Utility Operations

DTE Electric:  The segment’s operating earnings totaled $307 million, up from $304 million in the prior-year quarter.

DTE Gas: The segment incurred an operating loss of $38 million compared with a loss of $28 million in the prior-year quarter.

Non-Utility Operations: The operating earnings at this segment amounted to $127 million compared with $142 million in the year-ago quarter.

2019 Guidance

DTE Energy raised its 2019 operating earnings per share guidance to $6.06-$6.40 from $6.02-$6.38 projected earlier. The Zacks Consensus Estimate of $6.24 for the company’s full-year earnings lies just above the midpoint of its guided range.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months.

VGM Scores

Currently, DTE Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

DTE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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