DTE Energy Q4 Results Beat View; Lifts 2015 Earnings Outlook

(RTTNews) - Electric and natural gas utility DTE Energy Co. (DTE) on Friday reported a profit for the fourth quarter that more than doubled from last year, reflecting higher earnings at its electric and non-utility segments.

Both revenue and adjusted earnings for the quarter beat analysts' expectations. Looking ahead, the company raised its operating earnings outlook for fiscal 2015.

Detroit, Michigan-based DTE Energy's net income for the fourth quarter were $299 million or $1.68 per share, up from $124 million or $0.70 per share in the previous-year quarter.

Excluding items, operating earnings for the quarter were $207 million or $1.17 per share, compared to $179 million or $1.01 per share in the same period last year.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude one-time items.

Operating revenues for the quarter grew 22 percent to $3.08 billion from $2.53 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 11 percent from the prior-year period to $2.54 billion.

Reported earnings at DTE Electric for the quarter rose 27 percent from the year-ago period to $128 million.

Meanwhile, reported earnings at DTE Gas for the quarter declined 40 percent from the year-ago period to $31 million. Total non-utility operations earnings for the quarter were $163 million, compared to operating loss of $16 million last year.

For fiscal 2014, DTE Energy's net earnings rose to $905 million or $5.10 per share from $661 million or $3.76 per share last year. Operating earnings for the year were $816 million or $4.60 per share, compared to $720 million or $4.09 per share last year.

Operating revenues for the year grew 27 percent to $12.30 billion from $9.66 billion in the previous year.

Street expected the company to earn $4.46 per share for the year on revenues of $11.03 billion.

Looking ahead to fiscal 2015, DTE Energy raised its operating earnings outlook to a range of $4.48 to $4.72 per share from the prior range of $4.43 to $4.67 per share. Analysts expect the company to earn $4.60 per share for the year.

DTE Energy said it has made substantial investments to ensure clean and reliable energy for our customers. As a result, the company recently filed its first DTE Electric rate case in four years.

The company noted that the rate case, if approved by the MPSC, would result in a $3.25 average increase since 2013 in residential customers' monthly bills. This translates into a total increase of about 1.5 percent annually.

DTE closed Thursday's trading at $83.99, down $0.71 or 0.84 percent on a volume of 1.53 million shares.