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MDU Resources (MDU) Misses Q1 Earnings, Reaffirms Guidance

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MDU Resources Group Inc. (MDU - Free Report) reported first-quarter 2017 operating earnings of 18 cents per share, missing the Zacks Consensus Estimate of 19 cents by 5.26%.

However, earnings improved 12.5%from the year-ago tally of 16 cents. This improvement was due to cost recovery efforts, higher electric and natural gas sales volumes.

Total Revenue

MDU Resources’ total revenue for the reported quarter was $937.9 million, surpassing the year-ago figure of $860.2 by 9%.

Quarterly Highlights

In the quarter under review, MDU Resources’ operating expenses amounted to $870.8 million, up 9.1% from $798.2 in the prior-year quarter.

Operating income came in at $67.1 million in the first quarter, up 8.2%.

The company incurred interest expense of $20.3 million, compared with $22.9 million in first-quarter 2016.

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

 

Financial Condition

Total debt was $1,703 million as of Mar 31, 2017, down from $1,858 million as of Mar 31, 2016.

The company’s cash flow from operating activities as of Mar 31, 2017 was $87 million, up from $46 million in the year-ago period.

Guidance

MDU Resources has reaffirmed 2017 earnings per share guidance in the range of $1.10–$1.25.

The company's long-term compound annual growth goal on earnings per share is 5–8%. Capital expenditure in 2017 is estimated to be $519 million. The company aims to invest $2,227 million in 2017–2021 time period.

Peer Releases

Atmos Energy Corporation (ATO - Free Report) first-quarter 2017 earnings of $1.52 per share outpaced the Zacks Consensus Estimate of $1.42 by 7.04%.

Clean Energy Fuels Corp. (CLNE - Free Report) reported  first-quarter 2017 operating earnings of 40 cents per share, outpacing the Zacks Consensus Estimate of a loss 13 cents by 407.7%.

ONEOK, Inc. (OKE - Free Report) reported first-quarter 2017 operating earnings of 41 cents per share, missing the Zacks Consensus Estimate of a loss 45 cents by 8.89%.

Zacks Rank

MDU Resources Group Inc. carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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