DTE Energy Company
) reported second quarter 2013 earnings per share of 62 cents,
missing the Zacks Consensus Estimate of 79 cents by 21.5%. The
bottom line also declined 28.7% year over year. The decline
reflects unusually hot weather last year which was not seen this
Including asset impairment charges of 2 cents per share at Power
and Industrial Projects, GAAP earnings reported by the company
were 60 cents versus 86 cents in the year-ago quarter.
Total revenue at DTE Energy was $2.2 billion, up 10.5% year over
year. The reported quarter's revenue also comfortably surpassed
the Zacks Consensus Estimate by $270 million.
Fuel, purchased power and gas expenses increased 34.9% year over
year to $940 million. Operation and maintenance expenses were up
0.3% year over year to $705 million.
The increase in revenue could not offset rising operating
expenses, thereby resulting in an operating income of $223
million, down 24.1% year over year.
Segment earnings were $89 million or 51 cents per share, down
from $127 million or 74 cents per share in the prior-year
Segment profit was $8 million or 5 cents per share, up from $4
million or 2 cents per share in second quarter 2012.
Gas Storage and Pipelines:
The segment generated profit of $16 million or 9 cents per share,
down from $17 million or 10 cents per share in the year-ago
Power and Industrial Projects:
The segment posted a profit of $11 million or approximately 6
cents per share, flat year over year.
The segment posted a loss of $2 million or 1 cent per share
versus a profit of $4 million or 2 cents per share in the
Corporate and Other:
Loss in the quarter was $13 million or 8 cents per share versus a
loss of 15 million or 7 cents per share a year ago.
As of Jun 30, 2013, cash and cash equivalents were $46 million,
down from $65 million as of Dec 31, 2012. At the end of second
quarter 2013, long-term debt, net of current portion, was $6.8
billion versus $7 billion at year-end 2012.
The company maintained its earnings per share guidance for 2013
in the range of $3.90 to $4.20. For 2014, the company expects
earnings per share in the range of $4.12 to $4.42. In the long
term, the company forecasts earnings growth in the range of 5.0%
to 6.0% driven by strong growth opportunities. The company
expects capital expenditure of $2.2 billion in 2013.
DTE Energy failed to meet both the parameters with respect to the
Zacks Consensus Estimate. However, going forward, the company is
confident of achieving its earnings target driven by its utility
growth plan, a constructive regulatory structure and low-risk
However, lower demand for electricity because of an unfavorable
macro backdrop and a weak Michigan economy in particular keeps us
concerned. DTE Energy presently retains a short-term Zacks Rank
However, stocks to look out for in the space are
Companhia Paranaense de Energia
Integrys Energy Group, Inc.
). While Companhia Paranaense de Energia and Integrys Energy
Group carry a Zacks Rank #1 (Strong Buy), Calpine Corp. holds a
Zacks Rank #2 (Buy).
CALPINE CORP (CPN): Free Stock Analysis
DTE ENERGY CO (DTE): Free Stock Analysis
COPEL-ADR PR B (ELP): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
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