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DTE Energy (DTE) Misses on Q3 Earnings, Raises '17 Outlook

DTE Energy Company DTE reported third-quarter 2017 operating earnings per share (EPS) of $1.48, which missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.
 
On a GAAP basis, reported earnings came in at $1.51 per share compared with $1.88 in the prior-year quarter. The variance between GAAP and pro forma earnings was due to certain non-recurring items, mark-to-market adjustments and discontinued operations.

Total Revenue

Total revenue came in at $3.25 billion, increased 10.9% from the year-ago figure of $2.93 billion on account of higher contribution from non-utility operations.

Operating Update

Operation and maintenance expenses in the reported quarter were $566 million, up 0.7% year over year.

Total operating expenses increased 16.8% to $2.82 billion. This was primarily owing to higher fuel, purchased power and gas expenses at non-utility (42.1%), depreciation and amortization (12.2%) and asset losses and impairments.

Operating income declined 17.7% to $418 million.

DTE Energy Company Price, Consensus and EPS Surprise

DTE Energy Company Price, Consensus and EPS Surprise | DTE Energy Company Quote

Segmental Highlights

Utility Operations

DTE Electric:  The segment’s operating earnings were $222 million, down 22.1% year over year.

DTE Gas: The segment incurred operating loss of $13 million compared with loss of $4 million in the year-ago period.

Non-Utility Operations

Gas Storage and Pipelines: The segment generated profits of $36 million, up from $28 million a year ago.

Power and Industrial Projects: The segment posted operating profits of $44 million, up from $35 million in the prior-year quarter.

Corporate and Other: The segment incurred operating loss of $15 million.

Guidance

DTE Energy raised its 2017 guidance of operating earnings in the range of $5.38-$5.69 per share compared with the year-ago guidance of $5.26-$5.57.

Zacks Rank

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

A Peer Release

Entergy Corporation ETR reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. However, the reported number improved 1.7% from the year-ago figure.

Upcoming Peer Releases

American Electric Power Co., Inc. AEP is scheduled to report third-quarter 2017 results on Oct 26. The company carries a Zacks Rank #3.

Edison International EIX is scheduled to report third-quarter 2017 results on Oct 30. The company carries a Zacks Rank #3.

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American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
Entergy Corporation (ETR): Free Stock Analysis Report
 
Edison International (EIX): Free Stock Analysis Report
 
DTE Energy Company (DTE): Free Stock Analysis Report
 
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