BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE: MDU) confirmed its financial guidance for 2024 and provided an updated earnings per share growth rate outlook ahead of its investor meetings today. The company reiterated its February 8 forecast, projecting its regulated energy delivery business to earn between $170 million and $180 million. Construction services are anticipated to generate revenues of $2.9 billion to $3.1 billion with margins similar to 2023 and an EBITDA between $220 million to $240 million.
The guidance excludes costs related to the tax-free spinoff of its construction services business, expected to be finalized in late 2024. MDU Resources' projections are based on assumptions of normal weather, economic and operating conditions, equipment and material availability, and a 1% to 2% annual growth in electric and natural gas customers. The company does not plan any equity issuances this year.
Post-spinoff, MDU Resources is targeting a 6% to 8% long-term compound annual growth rate in earnings per share. This outlook assumes the spinoff will lead to a pure-play regulated energy delivery company.
The company's Analyst and Investor Day will be held at the New York Stock Exchange at 10 a.m. EDT today, with a live webcast available for interested parties.
MDU Resources, a part of the S&P MidCap 400 index, delivers essential products and services through its regulated energy delivery and construction services businesses.
This news article is based on a press release statement from MDU Resources Group, Inc.
InvestingPro Insights
As MDU Resources Group, Inc. (NYSE: MDU) stands firm on its financial guidance for 2024, investors may be looking for additional indicators to gauge the company's performance and potential investment value. Here's a snapshot of key metrics and insights from InvestingPro that could provide further context:
MDU Resources is currently trading at a Price-to-Earnings (P/E) ratio of 11.25, with a slight increase to 15.74 when adjusted for the last twelve months as of Q4 2023. This positions the company favorably in terms of earnings valuations, as it trades at a low earnings multiple. Additionally, the company's PEG ratio, which measures the P/E ratio relative to earnings growth, is at an attractive 0.75 for the same period, suggesting that the stock may be undervalued based on near-term earnings growth expectations.
Investors should note that MDU Resources has demonstrated resilience in its dividend policy, maintaining payments for 54 consecutive years, a testament to its commitment to shareholder returns. This is complemented by a solid track record of returns, with a 15.39% price total return over the last three months as of the date of the press release, and a year-to-date price total return of 15.86%.
For those considering a deeper analysis, two InvestingPro Tips highlight the current state of the stock: analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in future performance. However, the Relative Strength Index (RSI) suggests the stock is in overbought territory, which may warrant a cautious approach for potential investors.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on MDU Resources. Use coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a total of 11 InvestingPro Tips that could further inform your investment decisions.
With the next earnings date set for May 1, 2024, stakeholders will be keenly watching how MDU Resources' strategies and market conditions will influence its financial outcomes and stock performance.
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