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Why Is DTE Energy (DTE) Down 13.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for DTE Energy (DTE - Free Report) . Shares have lost about 13.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is DTE Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

DTE Energy Q4 Earnings Beat Estimates, Increase Y/Y

DTE Energy Company reported fourth-quarter 2019 operating earnings per share of $1.35, which surpassed the Zacks Consensus Estimate of $1.29 by 4.7%. The bottom line improved 48.4% from 91 cents in the year-ago quarter.

In 2019, the company generated operating earnings per share of $6.30, which surpassed the Zacks Consensus Estimate of $6.22 by 1.3%. The full-year bottom line also improved 2.1% from $6.17 in the prior year.

Highlights of the Release

Operating net income in the reported quarter totaled $258 million compared with $165 million in the year-ago quarter.

In 2019, the company invested $2.1 billion with Michigan-based companies, exceeding its commitment to the Pure Michigan Business Connect local supplier initiative.

More than 10,000 residential customers have enrolled in DTE Energy’s MIGreenPower, and some of Southeast Michigan’s largest commercial customers have already signed up for 400 MW of voluntary wind energy, which is equivalent to powering over 135,000 homes with clean energy.

Segmental Details

Utility Operations


DTE Electric:  The segment’s operating earnings totaled $128 million, up from $60 million in the prior-year quarter.

DTE Gas: The segment recorded operating earnings of $64 million compared with $62 million in the prior-year quarter.

Non-Utility Operations: Operating earnings at this segment amounted to $93 million compared with $78 million in the year-ago quarter.

2020 Guidance

DTE Energy reiterated its 2020 operating earnings per share guidance in the range of $6.47-$6.75. The Zacks Consensus Estimate of $6.59 for the company’s full-year earnings lies below the midpoint of its guided range.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted -11.5% due to these changes.

VGM Scores

Currently, DTE Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

DTE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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