U.S. Markets open in 2 hrs 30 mins

Is a Beat in Store for DTE Energy (DTE) in Q2 Earnings?

Zacks Equity Research
1 / 2

Is a Beat in Store for DTE Energy (DTE) in Q2 Earnings?

In April 2018, at the beginning of the second quarter, DTE Energy's (DTE) service territories mostly witnessed colder-than-normal winters.

DTE Energy Company DTE is slated to report second-quarter 2018 results on Jul 25, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 1.06%. Its bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 2.08%.

Factors at Play

In April 2018, at the beginning of the second quarter, DTE Energy’s service territories mostly witnessed colder-than-normal winters. In May and June, DTE Energy’s service territories experienced wettest precipitation. These cumulatively indicate at higher electricity demand, which in turn, should boost DTE Energy’s electric segment’s revenues in the quarter under review.

However, the company announced that a remarkable decline in natural gas price has taken place in March and April 2018, that will reduce its customers’ gas bill. This, in turn, is expected to weigh on DTE Energy’s gas revenues in the second quarter and hurt the company’s bottom-line performance.  In line with this, the consensus estimate for DTE Energy’s earnings of 93 cents per share for the yet-to-be-reported quarter reflects a year-over-year decline of 13.1%.

Earnings Whispers

Our proven model shows that DTE Energy is likely to beat estimates in the second quarter. Notably, a stock needs to have both — a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. DTE Energy has the right combination of these two key ingredients, as you will see below.

Zacks ESP: DTE Energy has an Earnings ESP of +2.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DTE Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

DTE Energy Company Price and EPS Surprise

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

Stocks That Warrant a Look

Here are a few players in the Utility sector that have the right combination of elements to post an earnings beat this quarter.

NRG Yield NYLD has an Earnings ESP of +11.77% and a Zacks Rank #1. The company is slated to release second-quarter results on Aug 2.

American Electric Power AEE will report second-quarter results on Jul 25. The company has an Earnings ESP of +1.21% and a Zacks Rank of 2.

ONEOK OKE has an Earnings ESP of +3.37% and a Zacks Rank #2. The company is expected to report second-quarter results on Jul 31.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.   

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


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
 
Ameren Corporation (AEE) : Free Stock Analysis Report
 
DTE Energy Company (DTE) : Free Stock Analysis Report
 
ONEOK, Inc. (OKE) : Free Stock Analysis Report
 
NRG Yield, Inc. (NYLD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research