DTE Energy Corporation DTE is set to report first-quarter 2020 results on Apr 28, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 4.65%.
However, in the trailing four quarters, the company came up with a negative earnings surprise of 0.97%, on average.
Let's take a closer look at the factors that are likely to have impacted DTE Energy’s performance.
Factors at Play
DTE Energy's service territories witnessed moderate snowfall during most part of first-quarter 2020. Such weather conditions are likely to have resulted in higher electricity demand, which, in turn, might have boosted DTE Energy’s top line in the soon-to-be-reported quarter.
However, some storms hit parts of Michigan, bringing heavy snowfall. This might have resulted in a few outages in DTE Energy’s service territories, thereby affecting the company’s top line partially.
Notably, the Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $3.31billion, indicating 5.8% decline from the figure reported in the year-ago quarter.
Around the onset of the last week of March, DTE Energy announced that it is voluntarily suspending all non-critical infrastructure and maintenance work to prioritize the health of its employees, in light of the novel coronavirus outbreak. Noncritical work includes infrastructure construction and home energy consultations. This might have impacted the company’s first quarter bottom line.
Meanwhile, DTE Energy expressed its concern that residential customers may not have beenable to pay their energy bills due to income reductions or health impacts from COVID-19. This might have hurt the company’s top as well as bottom line growth.
The Zacks Consensus Estimate for DTE Energy’s first-quarter earnings is pegged at $1.81 per share, indicating 11.7% deterioration from the figure reported in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict 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. But that is not the case here.
Earnings ESP: DTE Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few players from the Utilities sector that have the right combination of elements to deliver an earnings beat in the to-be-reported quarter.
CenterPoint Energy (NYSE:CNP) CNP has an Earnings ESP of +10.59% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.
Duke Energy DUK has an Earnings ESP of +0.68% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 12.
Consolidated Edison ED has an Earnings ESP of +0.69% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.
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