DTE Energy Beats Earnings & Sales - Analyst Blog
April 26 2013 - 10:51AM
Zacks
DTE Energy Company (DTE) reported first quarter
2013 earnings per share of $1.34, easily beating the Zacks
Consensus Estimate of $1.03. Results improved 47.3% year over
year.
Earnings were driven by normal weather compared to a very mild
winter in 2012, operating cost improvements at the utilities, and
solid performance from the non-utility businesses.
Operating Statistics
Total revenue at DTE Energy was $2.5 billion, up 12.4% year over
year. The reported quarter’s revenue also comfortably surpassed the
Zacks Consensus Estimate of $2.3 billion.
Fuel, purchased power and gas expenses increased 15.2% year over
year to $1 billion. Operation and maintenance expenses were up 1.9%
year over year to $735 million.
The increase in expenses was offset by the revenue climb, thereby
resulting in an operating income of $410 million, up 31.4% year
over year.
Segment Update
DTE Electric: Segment earnings were $115 million
or 66 cents per share, up from $96 million or 56 cents in the
prior-year quarter.
DTE Gas: Segment profit was $96 million or 55
cents per share, up from $52 million or 31 cents per share in first
quarter 2012.
Non-Utility Operations
Gas Storage and Pipelines: The segment generated
profit of $17 million or 10 cents per share, flat year over
year.
Power and Industrial Projects: The segment posted
a profit of $12 million or 7 cents per share, up from $8 million or
5 cents per share in the year-ago period.
Energy Trading: The segment posted a profit of $7
million or 4 cents per share versus a loss of $2 million or 1 cent
per share in the prior-year period.
Corporate and Other: Loss in the quarter was $13
million or 8 cents per share versus a loss of 15 cents or 10 cents
per share.
Financial Update
As of Mar 31, 2013, cash and cash equivalents were $218 million, up
from $65 million as of Dec 31, 2012. At the end of first quarter
2013, long-term debt, net of current portion, was $7.2 billion
versus $7 billion at year-end 2012.
During the quarter, net cash from operating activities was $597
million, down from $620 million in the first quarter of 2012.
Guidance
The company expects earnings per share for 2013 in the range of
$3.85 to $4.15. DTE Energy expects cash from operations of $1.8
billion for 2013.
In the long term, the company expects earnings growth in the range
of 5.0% to 6.0%.
Zacks Rank
DTE Energy presently retains a short-term Zacks Rank #4 (Sell).
Stocks in the energy sector worth considering are ALLETE,
Inc. (ALE), Calpine Corp. (CPN),
Cleco Corporation (CNL), all with a Zacks Rank #2
(Buy).
ALLETE INC (ALE): Free Stock Analysis Report
CLECO CORP (CNL): Free Stock Analysis Report
CALPINE CORP (CPN): Free Stock Analysis Report
DTE ENERGY CO (DTE): Free Stock Analysis Report
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