DTE Energy Beats Earnings & Sales - Analyst Blog


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.


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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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ALE , CNL , CPN , DTE



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