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DTE Energy (DTE) to Report Q3 Earnings: What's in the Cards?

DTE Energy Corporation DTE is set to report third-quarter 2020 results on Oct 27, before market open. In the last reported quarter, the company delivered an earnings surprise of 16.79%.

In the trailing four quarters, the company came up with an earnings surprise of 2.55%, on average.

Let's take a closer look at the factors influencing DTE Energy’s upcoming results.

Factors to Consider

During most part of the third quarter, the company’s service territories witnessed warmer-than-normal temperatures. This is likely to have boosted electricity demand for cooling purpose, among the company's customers. Residential sales, in particular, are likely to have seen significant growth since the COVID-19 situation has resulted in increased stay-at-home provisions for office goers. This, in turn, is anticipated to have contributed to the top line in the soon-to-be-reported quarter.

In the second quarter, DTE Energy started its operations at Michigan’s largest wind park, the Polaris Wind Park. With increased adoption of clean energy in vogue, the commencement of the wind park might have favorably impacted electricity distribution by the company during the quarter. This too is likely to have boosted DTE Energy’s revenues in the to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.17 billion, indicating a 1.7% improvement from the year-ago quarter’s reported figure.

Although warm weather conditions might have been beneficial for the company, more than 100,000 customers were without power in the states of Michigan and Indiana due to a severe storm that took place midway during the quarter. Such severe conditions are expected to have extensively damaged electric poles and infrastructure, thereby causing DTE Energy to bear huge expenses for the resultant restoration work. This might have pushed up the company’s quarterly expenses, thereby hurting the bottom line.

The Zacks Consensus Estimate for DTE Energy’s third-quarter earnings is pegged at $1.85 per share, suggesting a 3.1% decline from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model predicts 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.

Earnings ESP: DTE Energy has an Earnings ESP of +9.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

DTE Energy Company Price and EPS Surprise

Other Stocks to Consider

Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

American Electric Power AEP is set to release third-quarter earnings on Oct 22. It has an Earnings ESP of +0.04% and a Zacks Rank #3, presently.

CMS Energy CMS is set to release third-quarter earnings on Oct 29. It has an Earnings ESP of +0.47% and a Zacks Rank #3, currently.

Exelon Corporation EXC is expected to release third-quarter numbers soon. It has an Earnings ESP of +1.20% and a Zacks Rank of 3, currently.

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American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
CMS Energy Corporation (CMS): Free Stock Analysis Report
Exelon Corporation (EXC): Free Stock Analysis Report
DTE Energy Company (DTE): Free Stock Analysis Report
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