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MDU Resources (MDU) Lags Q2 Earnings Estimates, Cuts 2022 EPS

·3 min read

MDU Resources Group Inc. MDU reported second-quarter 2022 operating earnings per share of 35 cents, which missed the Zacks Consensus Estimate of 49 cents by 28.6%. The bottom line also decreased by 30% from the year-ago earnings of 50 cents per share.

Total Revenues

Total revenues came in at $1,720.9 million, up 20.9% from $1,423.7 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline improved by 24.1% from the prior-year quarter’s level to $323.4 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments improved by 20.2% from the year-ago quarter level to $1,397.5 million.

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

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

MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote

Highlights of the Release

Total operating expenses for the second quarter amounted to $1,600.3 million, up 24.4% from the year-ago quarter’s $1,286 million, due to an increase in operation and maintenance expenses by 22.2%.

The operating income for the reported quarter was down 12.4% year over year to $120.6 million.

MDU Resources’ interest expenses of $28.1 million were up 20.1% from $23.4 million in the prior-year quarter.

As of Jun 30, 2022, the construction services business had a backlog of $1.92 billion, up 46% from the year-ago quarter’s $1.32 billion.

As of Jun 30, 2022, the construction materials business had a backlog of $1.13 billion, up 24% from $912 million year over year.

Financial Highlights

Cash and cash equivalents as of Jun 30, 2022 were $65.4 million compared with $54.2 million on Dec 31, 2021.

Total debt amounted to $3,028 million as of Jun 30, 2022 compared with $2,742 million on Dec 31, 2021.

MDU Resources’ net cash provided by operating activities in the first six months of 2022 was $117.4 million compared with $182.8 in the prior-year period.

Guidance

MDU Resources revised its guidance and expects 2022 earnings guidance in the range of $1.75-$1.90 per share from $2.00 to $2.15. The company lowered its earnings expectation considering ongoing inflationary and supply-chain challenges.

MDU Resources plans to invest $747 million in capital projects in 2022. The capital program is expected to be largely funded by operating cash flows in the range of $550-$600 million.

Zacks Rank

MDU Resources currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Dominion Energy D is scheduled to announce second-quarter 2022 results on Aug 8 before market open. The Zacks Consensus Estimate for earnings is pegged at 77 cents per share. Dominion Energy’s long-term earnings growth is projected at 6.4%.

Hawaiian Electric Industries HE is scheduled to announce second-quarter 2022 results on Aug 8 after market close. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share. Hawaiian Electric Industries’ long-term earnings growth is projected at 3.2%.

Southwest Gas Holdings SWX is set to release second-quarter 2022 results on Aug 9 after market close. The Zacks Consensus Estimate for earnings per share is pegged at 53 cents. Southwest Gas’ long-term earnings growth is projected at 5%.


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