DTE Energy Q1 Profit Rises, Results Beat View; Backs 2014 Outlook

(RTTNews) - Electric and natural gas utility DTE Energy Co. (DTE) on Friday reported a 39 percent increase in profit for the first quarter from last year, reflecting higher earnings at all its segments due to high energy demand amid cold winter weather.

Both revenue and adjusted earnings for the quarter beat analysts' estimates. Looking ahead, the company affirmed its operating earnings outlook for fiscal 2014.

Gerard Anderson, chairman and CEO of DTE Energy said, "Extremely cold weather in the first quarter drove exceptionally high energy demand, which in turn, shaped our financial result compared with last year. We also recognize that the record-setting frigid temperatures were a significant challenge for many of our state's most vulnerable citizens."

Detroit, Michigan-based DTE Energy's net earnings for the first quarter was $326 million or $1.84 per share, up from $234 million or $1.34 per share in the previous-year quarter.

Excluding non-recurring items, mark-to-market adjustments and discontinued operations, operating earnings for the quarter were $300 million or $1.69 per share, compared to $234 million or $1.34 per share in the same period last year.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $1.47 per share for the quarter. Analysts' estimates typically exclude one-time items.

Operating revenues for the quarter grew 56 percent to $3.93 billion from $2.52 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.68 billion for the quarter.

Operating expenses for the quarter increased 60 percent from the prior-year period to $3.37 billion.

Reported earnings at DTE Electric for the first quarter rose 18 percent from the year-ago period to $136 million. Meanwhile, reported earnings at DTE Gas grew 34 percent to $129 million. Total non-utility operations earnings more than doubled from a year ago to $78 million.

The company said it implemented a 6.5 percent reduction to customers' electric rates in January.

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 $4.33 per share for the year.

DTE is currently trading at $78.07, up $0.92 or 1.19 percent on a volume of 226,562 shares.