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Will DTE Energy (DTE) Earnings Pull a Surprise this Season? - Analyst Blog

Electric utility provider, DTE Energy CompanyDTE is scheduled to report first-quarter 2015 results before the opening bell on Apr 24.

Last quarter, DTE Energy posted a positive earnings surprise of 12.50%. On an average, the company has posted a 4.77% positive surprise over the last four quarters. Let's see how things are shaping up for this announcement.

Factors Influencing this Quarter

In 2014, Detroit, MI-based DTE Energy invested heavily in natural gas and renewables. Last year, the company brought online its Echo Wind Park having a green power generation capacity of 112 megawatt. Apart from helping in achieving regulatory compliance, these additions are sure to boost the company's earnings this quarter.

DTE Energy's usage of natural gas has helped it to reduce the cost of power generation. Other than helping in cutting cost and stimulating margins, natural gas usage is also benefiting DTE Energy's customers through frequent rate reductions.

However, pending decisions on rate cases and imposition of stringent environmental laws may adversely affect the company's bottom line.

Earnings Whispers?

Our proven model does not conclusively show that DTE Energy is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. That is not the case here as you will see below.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are at $1.36 per share.

Zacks Rank: DTE Energy has a Zacks Rank #2. However, its 0.00% ESP complicates the predictive power.

We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks in the utility industry you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:

TECO Energy, Inc. TE has an earnings ESP of +3.70% and a Zacks Rank #2.

PG&E Corporation PCG has an earnings ESP of +26.87% and a Zacks Rank #3.

Edison International EIX has an earnings ESP of +1.27% and a Zacks Rank #3.

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TECO ENERGY (TE): Free Stock Analysis Report

EDISON INTL (EIX): Free Stock Analysis Report

PG&E CORP (PCG): Free Stock Analysis Report

DTE ENERGY CO (DTE): 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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