U.S. Markets closed

Will DTE Energy (DTE) Crush Estimates at Its Next Earnings Report?

Zacks Equity Research

Looking for a stock that might be in a good position to beat earnings at its next report? Consider DTE Energy Company DTE, a firm in the Utility - Electric Power industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, DTE has beaten estimates by at least 5% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, DTE expected to post earnings of 90 cents per share, while it actually produced earnings of 98 cents per share, a beat of 8.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of $1.54 per share, when it actually saw earnings of $1.96 per share instead, representing a 27.3% positive surprise.

DTE ENERGY CO Price and EPS Surprise

DTE ENERGY CO Price and EPS Surprise | DTE ENERGY CO Quote

Thanks in part to this history, recent estimates have been moving higher for DTE Energy. In fact, the Earnings ESP for DTE is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for DTE, as the firm currently has a Zacks Earnings ESP of 2.41%, so another beat could be around the corner.

This is particularly true when you consider that DTE has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that DTE could see another beat at its next report, especially if recent trends are any guide.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>

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
DTE ENERGY CO (DTE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research