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MDU Resources (MDU) Q4 Earnings Miss Estimates, Sales Rise Y/Y

MDU Resources Group Inc. MDU reported fourth-quarter 2021 operating earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate of 55 cents by 23.6%. The bottom line narrowed 25% from the year-ago earnings of 56 cents per share. MDU Resources’ 2021 EPS were $1.87, down 4.1% from $1.95 in 2020.

Total Revenues

Total revenues came in at $1,443.1million, up 4.18% from $1,385.2 million in the year-ago quarter.

MDU Resources Group, Inc. Price, Consensus and EPS Surprise

MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote

Operating revenues in the electric, natural gas distribution and regulated pipeline improved 18.8% from the prior-year quarter’s level to $450.3 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments slid 1.3% from the year-ago quarter’s level to $992.8 million.

Highlights of the Release

Total operating expenses for the fourth quarter amounted to $1,320.9 million, up 6.6% from the year-ago quarter’s $1,239.3 million, due to an increase in operation and maintenance expenses by 1.3% along with the higher manufacturing cost.

Operating income for the reported quarter was down 16.2% year over year to $122.2 million.

MDU Resources’ interest expenses of $23.8 million were up 1.7% from $23.4 million in the prior-year quarter.

As of Dec 31, 2021, the construction services business had a backlog of $1.38 billion compared with $1.27 billion on Dec 31, 2020.

As of Dec 31, 2021, the construction materials business had a backlog of $708 million, up from $673 million year over year.

Financial Highlights

Cash and cash equivalents as of Dec 31, 2021, were $54.2 million compared with $59.6 million at the 2020 end.

Total debt amounted to $2,742 million as of Dec 31, 2021, compared with $2,263 million on Dec 31, 2020.

MDU Resources’ net cash provided by operating activities was $495.8 million in 2021, down 35.5%, compared with $768.4 million in 2020.

Guidance

MDU Resources initiated 2022 earnings guidance in the range of $2.00-$2.15 per share. This estimate is based on several assumptions, of which worth mentioning are normal weather and continued addition to the electric and natural gas customer base at a 1-2% rate annually.

In the long term, the utility reiterated EPS to grow 5-8% on an annual basis.

MDU Resources plans to invest $726 million in 2022 and $3,044 million for five years from 2022 to 2026.Capital spending was associated with a focus on infrastructure development, grid safety, reliability and resiliency.

Zacks Rank

MDU Resources currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Entergy Corp. ETR is slated to report fourth-quarter 2021 earnings on Feb 23 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 68 cents.

Entergy’s long-term (three to five years) earnings growth is currently pegged at 1%. The Zacks Consensus Estimate for ETR’s 2022 earnings implies year-over-year growth of 5.85%.

ONE Gas Inc. OGS is slated to report fourth-quarter 2021 earnings on Feb 23 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $1.12.

ONE Gas’ long-term earnings growth is currently pegged at 5%. The Zacks Consensus Estimate for OGS’s 2022 earnings implies year-over-year growth of 5.9%.

Sempra Energy SRE is slated to report fourth-quarter 2021 earnings on Feb 25 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $2.02.

Sempra Energy’s long-term earnings growth is currently pegged at 5.28%. The Zacks Consensus Estimate for SRE’s 2022 earnings implies year-over-year growth of 1.65%.


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