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DTE Energy (DTE) to Post Q1 Earnings: What's in the Cards?

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

Last quarter, the company delivered a positive earnings surprise of 2.44%. DTE Energy surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 5.32%.

Factors at Play

The company’s service territories mostly witnessed colder-than-normal winters in the first quarter. In particular, Michigan had its wettest cold season on record this year, which indicates higher electricity demand. This in turn is expected to boost DTE Energy’s revenues in the quarter under review.

On the bottom-line front, management expects the recent tax reform to be accretive to DTE Energy’s 2018 earnings by 10 cents. We believe part of this accretion to benefit the company’s first-quarter earnings and will duly get reflected in the form of higher quarterly earnings. In line with this, the consensus estimate for DTE Energy’s earnings of $1.89 per share for the yet-to-be-reported quarter reflects year-over-year growth of 5.6%.

However, higher interest expense is expected to weigh on the company’s first-quarter results.

Earnings Whispers

Our proven model does not show that DTE Energy will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP: DTE Energy has an Earnings ESP of +1.15%. 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 #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) while going into an earnings announcement.


DTE Energy Company Price and EPS Surprise


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


Stocks That Warrant a Look

Instead, here are a few players in the utility sector that have the right combination of elements to post an earnings beat this quarter.

CenterPoint Energy CNP will report first-quarter results on May 4. The company has an Earnings ESP of +0.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CMS Energy CMS has an Earnings ESP of +2.08% and a Zacks Rank #2. The company is expected to report first-quarter results on Apr 26.

NRG Energy NRG has an Earnings ESP of +88.89% and a Zacks Rank #3. The company is slated to release first-quarter results on May 3.

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