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DTE Energy (DTE) Up 1.7% Since Last Earnings Report: Can It Continue?

Zacks Equity Research

A month has gone by since the last earnings report for DTE Energy (DTE). Shares have added about 1.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is DTE Energy due for a pullback? 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 catalysts.

DTE Energy Misses on Q2 Earnings, Hikes '19 EPS View

DTE Energy Company reported second-quarter 2019 operating earnings per share (EPS) of 99 cents, which missed the Zacks Consensus Estimate of $1.09 by 9.2%. The bottom line also declined 27.2% from $1.36 registered in the year-ago quarter.

The year-over-year downside can be attributable to the record setting temperature that the company’s service territories witnessed in last year’s second quarter.  

Highlights of the Release

The company announced its plans to provide electric vehicles to more Michigan residents and businesses through its new Charging Forward program. The program includes incentives, customer education and charging infrastructure growth.

Operating net income in the reported quarter totaled $183 million compared with $247 million in the year-ago quarter.

Segmental Details

Utility Operations

DTE Electric: The segment’s operating earnings totaled $134 million, down from $163 million registered in the prior-year quarter.

DTE Gas: The segment generated operating earnings of $4 million in the quarter compared with $14 million in the prior-year quarter.

Non-Utility Operations: The operating earnings at this segment amounted to $77 million compared with $111 million in the year-ago quarter.

Guidance

DTE Energy raised its 2019 operating earnings per share guidance to $6.02-$6.38 from $5.97-$6.33 projected earlier. The Zacks Consensus Estimate of $6.20 for the company’s full-year earnings is in line with the mid point of the company guided range.

How Have Estimates Been Moving Since Then?

Estimates review 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 a B. Charting a somewhat similar path, 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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