DTE Energy Company
) reported fourth quarter and full-year 2012 earnings. In the
fourth quarter, the company posted operating earnings of 85 cents
per share, in line with the Zacks Consensus Estimate. However,
earnings were below the year-ago figure of 89 cents per
Including one-time charges of 38 cents per share, GAAP
earnings per share reported by the company were 47 cents per
share versus 88 cents in the year-ago quarter.
In full-year 2012, operating earnings were $3.94 per share, up
from $3.75 per share in the year-ago period. The figure was also
ahead of the Zacks Consensus Estimate by a penny.
Including one-time charges of 39 cents per share, GAAP
earnings in 2012 were $3.55 per share versus $4.18 per share in
The results were driven by normal winter weather, ongoing
growth at Power & Industrial Projects and continued cost
reductions in Corporate & Other. However, these increases
were partially offset by market opportunities at Energy Trading
in 2011 that did not recur in 2012.
Total revenue of DTE Energy in the fourth quarter of 2012 was
$2.3 billion, up from the year-ago figure of $2.2 billion.
However, the figure was lower than the Zacks Consensus Estimate
by $79 million.
In full-year 2012, the top-line figure was $8.8 billion, down
from $8.9 billion in full-year 2011. The figure was also below
the Zacks Consensus Estimate by $236 million.
Operating income in the quarter under review was $267 million,
down 22.8% year over year. Fuel, purchased power and gas expenses
were $949 million, up 14.5% year over year.
Quarterly Segment Update
Segment earnings during the reported quarter were $66 million or
38 cents per share, down from $89 million or 52 cents per share
in the prior-year quarter.
The segment generated operating income of $55 million or 32 cents
per share compared with $41 million or 24 cents per share in the
Gas Storage and Pipelines:
Segment profit was $13 million or 8 cents per share, down from
$15 million or 9 cents per share.
Power and Industrial Projects:
The segment posted a profit of $12 million, up from $11 million
in the year-ago period.
The segment posted a profit of $9 million or 5 cents per share,
compared with $16 million or 9 cents per share in the prior-year
Corporate and Other:
Loss in the quarter was $8 million or 5 cents per share, compared
with a loss of $20 million or approximately 12 cents per share in
the prior-year quarter.
The company continues to maintain its previously announced
guidance of $3.85 to $4.15 per share for 2013. The company plans
to continue to increase its operating earnings in the range of 5%
to 6% in the long term.
Profits from DTE Energy met the Zacks Consensus Estimate;
however the top line missed the expectation. Going forward, the
growth momentum is expected to be maintained by beneficial
regulatory policies in Michigan, higher authorized rates for its
regulated business and growth opportunities in its un-regulated
Also, the company maintained its trend of increasing the
dividend in 2012. Going forward, the company intends to continue
to pay attractive dividends to its shareholders. Besides focusing
on its financial goals, the company also plans to invest in new
businesses with Michigan-based suppliers.
In 2012, the company spent $826 million with Michigan-based
suppliers versus $598 million spent in 2011. As Michigan
companies deliver quality products at a competitive price, we
believe this arrangement will be favorable for the company.
Overall, the primary aim of the company is to reach new levels
of financial, operational and reliability excellence during the
upcoming year. DTE Energy currently retains a Zacks Rank #2
Detroit, Michigan-based DTE Energy Company is a holding
company with subsidiaries engaged in regulated and unregulated
energy businesses. Detroit Edison Company and Michigan
Consolidated Gas Company are its largest regulated
DTE Energy's unregulated businesses include gas pipelines and
storage, unconventional gas exploration, development and
production; power and industrial projects, coal transportation
and marketing, and energy marketing and trading operations.
Other Stocks to Consider
Other stocks to consider are
Alliant Energy Corporation
), all sporting a Zacks Rank #1 (Strong Buy).
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DTE ENERGY CO (DTE): Free Stock Analysis
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