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DTE Energy (DTE) Misses on Q4 Earnings, Sales Rise Y/Y

DTE Energy CompanyDTE reported fourth-quarter 2016 operating earnings per share (EPS) of 81 cents, which missed the Zacks Consensus Estimate of 84 cents by 3.6%. Operating earnings also declined 19.8% from the year-ago figure of $1.01.

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On a GAAP basis, reported earnings came in at 73 cents per share, compared with 45 cents reported in the prior-year quarter. The variance between GAAP and pro forma earnings was due to certain non-recurring items, mark-to-market adjustments and discontinued operations.

For full-year 2016, the company reported operating EPS of $5.28, which was in line with the Zacks Consensus Estimate.

Total Revenue

Total revenue came in at $2.87 billion, which missed the Zacks Consensus Estimate of $3.28 billion by 12.5%. Reported revenues however improved 15.6% from the year-ago figure of $2.49 billion on account of higher contribution from both the utility and non-utility operations.

For full-year 2016, the company reported revenues of $10.63 billion, which missed the Zacks Consensus Estimate of $11.33 billion by 6.2%.

DTE Energy Company Price, Consensus and EPS Surprise

DTE Energy Company Price, Consensus and EPS Surprise | DTE Energy Company Quote

Operating Update

Operation and maintenance expenses in the reported quarter were $682 million, up 10.4% year over year.

Total operating expenses increased 9.35% to $2.57 billion. This was primarily due to higher fuel, purchased power and gas expenses at non-utility (24.2%), depreciation and amortization (20.7%) and taxes on other income (7.3%).

Operating income increased 124.6% to $301 million.

Segmental Highlights

Utility Operations

DTE Electric: Segment operating earnings were $75 million, down 25.7% year over year.

DTE Gas: The segment reported operating income of $42 million, up 7.7% year over year.

Non-Utility Operations

Gas Storage and Pipelines: The segment generated profits of $34 million, up from $28 million a year ago.

Power and Industrial Projects: The segment posted operating profits of $22 million, up from $12 million in the prior-year quarter.

Corporate and Other: The segment reported operating loss of $28 million, compared with the year-ago loss of $1 million.

Financial Update

Cash from operations in 2016 was $2.1 billion, with free cash flow of $1.3 billion.

The company utilized $0.5 billion to pay dividends and another $0.9 billion to redeem existing debts during the year.

Guidance

DTE Energy reiterated its 2017 guidance that was issued last November. The company expects to generate operating earnings guidance in the range of $5.15-$5.46 per share in 2017.

Peer Releases

American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

CMS Energy Corporation CMS reported fourth-quarter 2016 adjusted earnings per share of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.

Zacks Rank

DTE Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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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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