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DTE Energy (DTE) Up 5.4% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for DTE Energy (DTE). Shares have added about 5.4% in that time frame, underperforming the S&P 500.

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

DTE Energy Q3 Earnings Miss Estimates, EPS View Down

DTE Energy Company reported third-quarter 2023 operating earnings per share (EPS) of $1.44 per share, which missed the Zacks Consensus Estimate of $1.67 by 13.8%. The bottom line also declined 10% from the year-ago quarter’s reported figure of $1.60 per share.

The company reported GAAP earnings of $1.61 per share compared with $1.99 in the prior-year quarter.

Highlights of the Release

The operating net income in the quarter was $298 million compared with $311 million in the year-ago period.

Segmental Details

Utility Operations

DTE Electric: The segment’s earnings were $1.30 per share compared with $1.80 in the prior-year quarter.

DTE Gas: The segment reported a loss of 3 cents per share compared with 12 cents in the year-ago period.

Non-Utility Operations: The segment reported operating earnings of 43 cents per share compared with 2 cents in the corresponding quarter of 2022.

2023 Guidance

DTE Energy updated its 2023 operating EPS projection. The company now expects operating EPS in the range of $5.65-$5.85, down from the prior expectation in the band of $6.09-$6.40. The Zacks Consensus Estimate for earnings is pegged at $6.18 per share, which lies above the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, DTE Energy has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, DTE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

DTE Energy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, FirstEnergy (FE), has gained 1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

FirstEnergy reported revenues of $3.49 billion in the last reported quarter, representing a year-over-year change of +0.4%. EPS of $0.88 for the same period compares with $0.79 a year ago.

FirstEnergy is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of +20%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

FirstEnergy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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