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MDU Resources (MDU) Q2 Earnings & Revenues Increase Y/Y

MDU Resources Group Inc. MDU delivered second-quarter 2020 operating earnings of 50 cents per share, which surged 61.3% from the year-ago quarter’s level. This upside was led by lower operation and maintenance expense, and higher returns on certain benefit plans.

Total Revenues

Total revenues in the second quarter were $1,362.9 million, up 4.5% from $1,303.6 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline inched up 2.1% to $241.3 million. Revenues in the non-regulated pipeline, construction materials and contracting, construction services and other segments increased 5.1% to $1,121.6 million.

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

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

Highlights of the Release

In the quarter under review, operating expenses of $1,224.6 million were up 1.5% from the prior-year quarter’s $1,206.3 million.

Operating income was $138.3 million, up 42.1% year over year.

The company’s interest expenses of $24.8 million were down 2.4% from $25.4 million in the prior-year quarter.

As of Jun 30, 2020, the construction services business had backlog of $1.31 billion, up 13.9% from $1.15 billion a year ago.

The construction materials business had a backlog of $875 million, down from $1.04 billion in the year-ago quarter.

Financial Highlights

Total debt amounted to $2,357 million as of Jun 30, 2020, down from $2,470 million as of Jun 30, 2019.

The company’s net cash provided by operating activities in the first six months of 2020 was $261.4 million compared with net cash used in operating activities of $22.9 million in the first six months of 2019.


MDU Resources raised 2020 earnings per share guidance to $1.65-$1.85 from the prior projection of $1.50-$1.70 with the current Zacks Consensus Estimate being $1.60. This expectation is based on the assumption that the company will invest $614 million in capital projects.

Also, it anticipates Construction services revenues in the range of $1.90-$2.10 billion with margins compared to the 2019 levels and construction materials revenues in the band of $2.20-$2.40 billion with margins slightly higher than the 2019 reading.

Zacks Rank

MDU Resources carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

ONE Gas Inc. OGS delivered second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.

Sempra Energy’s SRE second-quarter 2020 adjusted earnings per share came in at $1.65, which missed the Zacks Consensus Estimate of $1.66 by 0.6%.

ONEOK Inc OKE posted second-quarter 2020 operating earnings of 32 cents per share, which lagged the Zacks Consensus Estimate of 50 cents by 36%.

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