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DTE Energy (DTE) to Report Q2 Earnings: What's in the Cards?
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DTE Energy Corporation (DTE - Free Report) is set to report second-quarter 2020 results on Jul 28, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 6.74%.
In the trailing four quarters, the company came up with a negative earnings surprise of 3.94%, on average.
Let's take a closer look at the factors influencing DTE Energy’s upcoming results.
Factors to Consider
During most part of the second quarter, the company’s service territories experienced below-normal temperatures along with occasional snowfalls. Alongside cold temperatures, its service territories witnessed significant precipitation levels throughout the quarter, resulting in wet weather conditions. These are likely to have resulted in higher electricity demand for heating purposes, which in turn are likely to have boosted DTE Energy’s top line in the second quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.93 billion, indicating a 1.4% improvement from the year-ago quarter’s reported figure.
In the first quarter’s earnings call, DTE Energy estimated its residential sales to increase 3-4% for the remainder of 2020, as people would need to spend an extensive period working from home till the pandemic subsides. The company anticipated the increase in residential sales to translate into higher earnings of $40-$50 million on an annual basis. Considering these expectations, we may expect DTE Energy’s second-quarter results to duly reflect residential sales growth and the resultant earnings growth.
Although the COVID-19 pandemic is likely to have affected the company’s commercial and industrial load, it is expected to not have impacted DTE Energy’s second-quarter earnings, as the residential segment might have offered the highest margins.
For the second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.25 per share, which indicates a 26.3% improvement from the figure reported in the year-ago quarter.
Earnings Whispers
Our proven model predicts an earnings beat for DTE Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: DTE Energy has an Earnings ESP of +6.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat this season.
NextEra Energy (NEE - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2. The company will announce second-quarter 2020 earnings on Jul 24.
The Southern Company (SO - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank #3. The company will announce second-quarter 2020 earnings on Jul 30.
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +24.14% and a Zacks Rank #3. The company will announce second-quarter 2020 earnings on Aug 6.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
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DTE Energy (DTE) to Report Q2 Earnings: What's in the Cards?
DTE Energy Corporation (DTE - Free Report) is set to report second-quarter 2020 results on Jul 28, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 6.74%.
In the trailing four quarters, the company came up with a negative earnings surprise of 3.94%, on average.
Let's take a closer look at the factors influencing DTE Energy’s upcoming results.
Factors to Consider
During most part of the second quarter, the company’s service territories experienced below-normal temperatures along with occasional snowfalls. Alongside cold temperatures, its service territories witnessed significant precipitation levels throughout the quarter, resulting in wet weather conditions. These are likely to have resulted in higher electricity demand for heating purposes, which in turn are likely to have boosted DTE Energy’s top line in the second quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.93 billion, indicating a 1.4% improvement from the year-ago quarter’s reported figure.
In the first quarter’s earnings call, DTE Energy estimated its residential sales to increase 3-4% for the remainder of 2020, as people would need to spend an extensive period working from home till the pandemic subsides. The company anticipated the increase in residential sales to translate into higher earnings of $40-$50 million on an annual basis. Considering these expectations, we may expect DTE Energy’s second-quarter results to duly reflect residential sales growth and the resultant earnings growth.
Although the COVID-19 pandemic is likely to have affected the company’s commercial and industrial load, it is expected to not have impacted DTE Energy’s second-quarter earnings, as the residential segment might have offered the highest margins.
For the second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.25 per share, which indicates a 26.3% improvement from the figure reported in the year-ago quarter.
Earnings Whispers
Our proven model predicts an earnings beat for DTE Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: DTE Energy has an Earnings ESP of +6.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DTE Energy Company Price and EPS Surprise
DTE Energy Company price-eps-surprise | DTE Energy Company Quote
Other Stocks to Consider
Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat this season.
NextEra Energy (NEE - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2. The company will announce second-quarter 2020 earnings on Jul 24.
The Southern Company (SO - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank #3. The company will announce second-quarter 2020 earnings on Jul 30.
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +24.14% and a Zacks Rank #3. The company will announce second-quarter 2020 earnings on Aug 6.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>