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DTE Energy (DTE) to Report Q2 Earnings: What's in Store?

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DTE Energy Company (DTE - Free Report) is slated to report second-quarter 2017 results on Jul 26, before the opening bell.

Last quarter, the company posted a positive earnings surprise of 14.01%. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 11.65%.

Let’s see how things are shaping up at the company prior to this announcement.

Factors at Play

The company’s investment strategy aims at improving reliability and customer experience while maintaining affordability. The 50 megawatt (MW) Pinnebog Wind Park in Huron County, which became operational in the first quarter, is likely to boost earnings in the to-be-reported quarter.

The new rates that were implemented during the fourth quarter of last year were offset by the warmer weather conditions and storms that the company witnessed during the first quarter 2017. However, in second quarter with improved weather conditions, its Electric Utility and Gas Utility segments are likely to reap the full benefits of the rate change.

DTE Energy Company Price and EPS Surprise

Earnings Whispers

Our proven model does not conclusively show that DTE Energy is likely to beat estimates 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) for this to happen. But that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: DTE Energy has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 93 cents.

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

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

Stocks That Warrant a Look

Instead, here are a few players in the utility sector that have the right combination of elements to post an earnings beat this quarter.

The AES Corp. (AES - Free Report) has an earnings ESP of +20.00% and a Zacks Rank #2. It is expected to report second-quarter 2017 earnings on Aug 8.

PPL Corp. (PPL - Free Report) has an earnings ESP of +2.08% and a Zacks Rank #2. It is expected to report second-quarter 2017 earnings on Aug 3.

Pattern Energy Group Inc. is expected to report second-quarter 2017 earnings on Aug 4. It has an earnings ESP of +23.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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