DTE Energy Q2 Profit Up 18%, But Misses View; Revenues Beat

(RTTNews) - Electric and natural gas utility DTE Energy Co. (DTE) on Friday reported an 18 percent increase in profit for the second quarter from last year, reflecting higher earnings at its electric utility.

Adjusted earnings for the quarter missed analysts' expectations, while revenues beat their estimates. Looking ahead, the company reaffirmed its operating earnings outlook for fiscal 2014.

Detroit, Michigan-based DTE Energy's net earnings for the second quarter were $124 million or $0.70 per share, up from $105 million or $0.60 per share in the previous-year quarter.

Excluding non-recurring items, mark-to-market adjustments and discontinued operations, operating earnings for the quarter were $128 million or $0.73 per share, compared to $109 million or $0.62 per share in the same period last year.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude one-time items.

Operating revenues for the quarter grew 21 percent to $2.70 billion from $2.23 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.30 billion for the quarter.

Operating expenses for the quarter increased 23 percent from the prior-year period to $2.45 billion.

Reported earnings at DTE Electric for the second quarter grew 45 percent from the year-ago period to $129 million. Meanwhile, reported loss at DTE Gas was $4 million, compared to earnings of $8 million in the year-ago period.

Total non-utility operations earnings declined 19 percent from last year to $17 million.

Looking ahead to fiscal 2014, DTE Energy reiterated its operating earnings guidance of $4.20 to $4.40 per share. Analysts expect the company to earn $4.41 per share for the year.

DTE Energy said that the first phase of the migration of Detroit Public Lighting Department customers to DTE started in July. The company noted that it was the beginning of a five- to seven-year project that will result in greater electric service reliability for these customers.

DTE closed Thursday's trading at $77.26, up $0.69 or 0.90 percent on a volume of 1.48 million shares.