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DTE Energy Tops Q4 Earnings, Lags Revenues, Keeps View

DTE Energy CompanyDTE reported fourth-quarter 2015 operating earnings per share of $1.01, surpassing the Zacks Consensus Estimate of 97 cents by 4.1%. However, earnings were 13.7% lower than the year-ago figure of $1.17 per share.

On a GAAP basis, earnings came in at 45 cents per share compared with $1.68 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.

In 2015, operating earnings were $4.82 per share, beating Street expectations of $4.77 and increasing from $4.60 per share in the prior year.

Total Revenue

Total revenues came in at $2,487 million in the quarter, lagging the Zacks Consensus Estimate of $3,845 million by 35.3% and declining 19.2% year over year.

In 2015, total revenues came in at $10.3 billion, lower than the year-ago number of $12.3 billion and short of the Zacks Consensus Estimate of $12 billion.

Operating Update

Operation and maintenance expenses in the reported quarter were $618 million, up 14.4% year over year.

Total operating expenses decreased 7.2% year over year to $2,353 million. This was primarily due to lower Fuel, Purchased Power and Gas expenses - utility and non-utility (down a respective 14.6% and 20.1%) and depreciation and amortization expenses (down 21.7%).

Due to lower revenues in the quarter, operating income was down 75.3% year over year to $134 million.

Segmental Highlights

DTE Electric: Segment earnings were $101 million, down 21.1% from the year-ago level.

DTE Gas: The segment reported an operating income of $39 million, up 25.8% year over year.

Non-Utility Operations

Gas Storage and Pipelines: The segment generated a profit of $28 million in the quarter compared with $23 million a year ago.

Power and Industrial Projects: The segment posted a profit of $12 million, down 50% year over year.

Energy Trading: The segment reported a profit of $1 million compared with $19 million in the prior-year period.

Corporate and Other: The segment incurred a loss of $1 million, narrower than a loss of $18 million in the year-ago quarter.

Financial Update

Cash from operations in 2015 was $1.9 billion with free cash outflow of $0.4 billion.

The company utilized $0.5 billion to pay dividends and $0.3 billion to redeem existing debts during 2015.

Guidance

DTE Energy maintained its operating earnings per share guidance for 2016 in the range of $4.80 to $5.05.

Upcoming Utility Releases

CMS Energy Corp. CMS reported fourth-quarter 2015 adjusted earnings per share of 38 cents, in line with the Zacks Consensus Estimate. Quarterly earnings also climbed 8.6% from the year-ago figure of 35 cents per share.

American Electric Power Co., Inc. AEP reported fourth-quarter 2015 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 50 cents by 4%.

NextEra Energy NEE reported fourth-quarter 2015 adjusted earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.11 by 5.41%.

Zacks Rank

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

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DTE ENERGY CO (DTE): Free Stock Analysis Report

AMER ELEC PWR (AEP): Free Stock Analysis Report

CMS ENERGY (CMS): Free Stock Analysis Report

NEXTERA ENERGY (NEE): 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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