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MDU Resources (MDU) Q4 Earnings Top Estimates, Revenues Up Y/Y

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MDU Resources Group Inc. (MDU - Free Report) reported fourth-quarter 2022 operating earnings per share (EPS) of 61 cents, which surpassed the Zacks Consensus Estimate of 51 cents by 19.7%. The bottom line also increased 45.2% from the year-ago quarter’s earnings of 42 cents.

GAAP earnings in the reported quarter were 57 cents per share compared with 42 cents in the year-ago quarter. MDU reported earnings of $1.87 per share for 2022.

Total Revenues

Total revenues were $1,859.2 million, up 28.9% from $1,443.1 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline improved 32.2% from the prior-year quarter to $595.2 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services, and other segments improved 27.3% from the year-ago quarter to $1,264 million.

MDU Resources Group, Inc. Price, Consensus and EPS Surprise

 

MDU Resources Group, Inc. Price, Consensus and EPS Surprise

MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote

 

Highlights of the Release

Total operating expenses for the fourth-quarter amounted to $1,683 million, up 27.4% from the year-ago quarter’s $1,320.9 million due to an increase of 23.7% in operation and maintenance expenses.

The operating income for the reported quarter was $176.2 million, up 44.2% from the year-ago quarter.

MDU Resources’ interest expenses of $34.5 million were up 45% from $23.8 million in the prior-year quarter.

As of Dec 31, 2022, the construction services business had a backlog of $2.13 billion, up 54% from $1.38 billion on Dec 31, 2021.

As of Dec 31, 2022, the construction materials business had a backlog of $935 million, up 32% from $708 million year over year.

Financial Highlights

Cash and cash equivalents as of Dec 31, 2022, were $80.5 million compared with $54.2 million as of Dec 31, 2021.

Total debt amounted to $3,088 million as of Dec 31, 2022, compared with $2,742 million as of Dec 31, 2021.

MDU Resources’ net cash provided by operating activities for 2022 was $510 million compared with $495.8 million in the last year.

Guidance

For 2023, MDU Resources expects earnings from its regulated energy delivery businesses in the range of $140 million-$150 million. In 2023, the company expects construction services revenues in the range of $2.75 billion-$2.95 billion and construction material revenues in the range of $2.50 billion-$2.70 billion.

MDU Resources expects to invest $644 million in 2023 and $3,529 million in the 2023-2027 time period.

Zacks Rank

MDU Resources currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Upcoming Releases

DTE Energy Company (DTE - Free Report) is slated to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.21 per share, implying a year-over-year increase of 15.24%.

DTE Energy's long-term (three to five years) earnings growth rate is currently pegged at 6%. DTE delivered an average earnings surprise of 2.85% in the last four quarters.

American Electric Power (AEP - Free Report) is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.02 per share, implying a year-over-year increase of 4.08%.

American Electric Power's long-term earnings growth rate is currently pegged at 6.11%. The Zacks Consensus Estimate for 2023 EPS is $5.35, implying a year-over-year increase of 6.36%.

Essential Utilities (WTRG - Free Report) is slated to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 45 cents per share, implying a year-over-year increase of 2.3%.

Essential Utilities' long-term earnings growth rate is currently pegged at 6%. The Zacks Consensus Estimate for 2023 EPS is pegged at $1.89, implying a year-over-year increase of 6.46%.


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