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MDU Resources (MDU) Beats on Q4 Earnings, Issues '18 View

Zacks Equity Research

MDU Resources Group Inc. MDU reported fourth-quarter 2017 operating earnings of 39 cents per share, beating the Zacks Consensus Estimate of 34 cents by 14.7%.

Operating earnings improved 18.2% from 33 cents in the year-ago quarter. The company’s construction businesses and regulated energy delivery businesses benefited from favorable weather, which boosted earnings.

Including income tax benefit of 20 cents per share, MDU Resources reported earnings of 59 cents.

Total Revenues

Total revenues in the reported quarter were $1,165.2 million, up 14.6% from $1,016.1 million in the year-ago quarter.

DU Resources Group, Inc. Price, Consensus and EPS Surprise

 

MDU Resources Group, Inc. Price, Consensus and EPS Surprise | MDU Resources Group, Inc. Quote

 

Highlights of the Release

In the quarter under review, operating expenses amounted to $1,039.7 million, up 14.9 % from $904.6 million in the prior-year quarter.

Operating income was $125.5 million, up 12.5%.

The company incurred interest expense of $20.8 million, up 1.46% from $20.5 million in fourth-quarter 2016.

Financial Highlights

Total debt was $1,715 million as of Dec 31, 2017, down from $1,790 million as of Dec 31, 2016.

In 2017, the company’s net cash flow from operating activities was $448 million, down from $462.2 million in 2016.

Guidance

MDU Resources issued 2018 guidance for earnings per share in the range of $1.25-$1.45.

The company plans to invest $2,331 million in the 2018-2022 period to strengthen regulated energy delivery as well as construction materials and services business lines.

Peer Releases

NextEra Energy NEE reported fourth-quarter 2017 adjusted earnings of $1.25 per share, missing  the Zacks Consensus Estimate of $1.31 by 4.6%.

Dominion Energy D reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

Exelon EXC reported fourth-quarter 2017 operating earnings of 55 cents per share, missing the Zacks Consensus Estimate of 62 cents by 11.3%.

Zacks Rank

MDU Resources carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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