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Will DTE Energy (DTE) Surprise Earnings Estimates in Q3?

DTE Energy CompanyDTE will release third-quarter 2015 financial results before the market opens on Oct 23, 2015. In the prior quarter, this utility reported a negative earnings surprise of 9.52%. DTE Energy Company currently has a Zacks Rank #3 (Hold). Let's see how things are shaping up at the company prior to this announcement.

Factors to Consider

DTE Energy is focused on developing its electric and gas utilities by consistently investing capital. The company is driving growth at its electric utility by investing in renewable assets and renewing its generation fleet in the near term. Over the long term, the company plans to overhaul its distribution system. Gas utility growth, on the other hand, is driven by infrastructure investments and the main line pipe replacement.

A substantial portion of the company's electricity generation comes from its electricity based units, which is subject to stringent environmental regulation. However, the company is increasing its investment in renewable projects which will have a positive impact on the performance.

Improving economic condition in its service territories with declining unemployment rates and an increase in new housing will likely increase the demand for electricity.

Earnings Whispers?

Our proven model does not conclusively show that DTE Energy is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here.

Zacks ESP : DTE Energy has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.22.

Zacks Rank : DTE Energy carries a Zacks Rank #3, which when combined with a 0.00% ESP makes a surprise prediction uncertain this season.

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

Other Stocks to Consider

Here are some companies tied to the Electric utility industry worth considering on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter.

Ameren Corporation AEE has an earnings ESP of +3.82% and carries a Zacks Rank #2 (Buy).

CMS Energy CMS has an earnings ESP of +8.16% and carries a Zacks Rank #2 (Buy).

Consolidated Edison, Inc. ED has an earnings ESP of +2.74% and carries a Zacks Rank #3 (Hold).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AMEREN CORP (AEE): Free Stock Analysis Report

CMS ENERGY (CMS): Free Stock Analysis Report

CONSOL EDISON (ED): 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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