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MDU Resources' (MDU) Earnings and Revenues Rise Y/Y in Q4

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MDU Resources Group Inc. (MDU - Free Report) delivered fourth-quarter 2019 operating earnings of 47 cents per share, which increased 20.5% from the year-ago quarter’s level. The upside was driven by exceptional performance of all business lines.

In 2019, the company posted operating earnings of $1.69 per share compared with $1.39 in 2018.

Total Revenues

Total revenues in the fourth quarter were $1,378.2 million, up 14% from $1,209.9 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline as well as the midstream segments increased 9% to $394 million. Revenues in the non-regulated pipeline and midstream, construction materials and contracting, construction services and other segments increased 16% to $984.2 million.

In 2019, the company generated revenues of $5,336.8 million compared with $4,531.6 million in 2018.

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 quarter under review, operating expenses amounted to $1,248 million, up 14.3% from the prior-year quarter’s figure of $1,091.6 million.

Operating income was $130.2 million, up 10% year over year.

The company incurred interest expenses of $24.5 million, up from $22.4 million in the prior-year quarter.

As of Dec 31, 2019, the construction services business had backlog of $1.14 billion, up 22% from the year-ago tally.

The construction materials business had backlog of $693 million, down from a backlog of $706 million in the year-ago period.

Financial Highlights

Total debt amounted to $2,243 million as of Dec 31, 2019, up from $2,109 million as of Dec 31, 2018.

The company’s net cash flow from operating activities in 2019 was $542.3 million, up from $499.9 million in 2018.

Guidance

MDU Resources expects 2020 earnings per share in the range of $1.65-$1.85, whose mid-point of $1.75 is higher than the current Zacks Consensus Estimate of $1.70.

The company plans to invest $2,926 million through 2020-2024.

Zacks Rank

MDU Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

Xcel Energy (XEL - Free Report) posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings of 68 cents, which missed the Zacks Consensus Estimate of 69 cents.

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