DTE Energy 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.

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewscontributorcontributors
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!