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DTE Energy Beats Q3 Earnings Estimates, Raises Guidance

DTE Energy CompanyDTE reported third-quarter 2015 operating earnings per share of $1.40, surpassing the Zacks Consensus Estimate of $1.22 by 14.8%. Also, earnings were 37.3% higher than the year-ago figure of $1.02, mainly attributable to a return to a more normal level of weather and storm activity at the electric utility.

On a GAAP basis, earnings came in at $1.47 per share compared with 88 cents per share in the prior-year quarter. The variance between GAAP and pro forma earnings was due to certain mark-to-market adjustments and discontinued operations.

Total Revenue

Total revenue came in at $2,598 million in the quarter, lagging the Zacks Consensus Estimate of $2,617 by 0.7% but surpassing the year-ago quarter revenues by 0.1%.

Operating Update

Operation and maintenance expenses in the reported quarter were $817 million, down 5% year over year.

Total operating expenses decreased 8.4% year over year to $2,158 million. This was primarily due to lower Fuel, Purchased Power and Gas expenses (down 5.9% year over year), depreciation and amortization expenses (down 33.2%), and operation and maintenance expenses.

Due to the increase in the top line, operating income in the reported quarter was up 84.1% year over year to $440 million.

Segmental Highlights

DTE Electric: Segment earnings were $214 million, up 58.5% from the year-ago level.

DTE Gas: The segment reported an operating loss of $11 million, narrower than the $16 million loss incurred a year ago.

Non-Utility Operations

Gas Storage and Pipelines: The segment generated a profit of $27 million, up 35% from the year-ago quarter.

Power and Industrial Projects: The segment posted a profit of $32 million, down 15.8% year over year.

Energy Trading: The segment reported a profit of $1 million versus $3 million in the prior-year period.

Corporate and Other: The segment incurred a loss of $9 million, against earnings of $1 million in the year-ago quarter.

Financial Update

Cash from operation in the first nine months of 2015 was $1.5 billion compared with $1.2 billion in first-nine months 2014.

The company utilized $0.4 billion to pay dividends and $0.5 billion to redeem existing debts during the first nine months of 2015.

Guidance

DTE Energy increased its operating earnings per share guidance for 2015 to the range of $4.65 to $4.91 from the earlier projection of $4.48 to $4.72.

Upcoming Utility Releases

NextEra Energy, Inc. NEE is expected to release its third-quarter earnings on Oct 28, 2015. The Zacks Consensus Estimate stands at $1.65.

Dominion Resources, Inc. D is expected to release its third-quarter earnings on Nov 2, 2015. The Zacks Consensus Estimate stands at $1.06.

Duke Energy Corp. DUK is expected to release its third-quarter earnings on Nov 5, 2015. The Zacks Consensus Estimate stands at $1.53.

Zacks Rank

DTE Energy currently has a Zacks Rank #3 (Hold).

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DTE ENERGY CO (DTE): Free Stock Analysis Report

NEXTERA ENERGY (NEE): Free Stock Analysis Report

DUKE ENERGY CP (DUK): Free Stock Analysis Report

DOMINION RES VA (D): Free Stock Analysis Report

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


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

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