DTE Energy (DTE) has surprised on estimates 3 out of the last 4 quarters by an average of 77.06%. The company recently raised 2009 earnings guidance. DTE Energy is trading with a forward P/E of 11.5.

Company Description

DTE Energy is an energy company that serves customers in Michigan. It operates Detroit Edison, which serves 2.2 million customers in Southeastern Michigan and MichCon, a natural gas utility providing energy to 1.2 million customers in Michigan.

It also operates other non-utility energy businesses that focus on gas pipelines and storage, coal transportation, power and industrial projects.

DTE Energy Raised 2009 Earnings Guidance

On Oct 19, DTE Energy raised its 2009 earnings guidance to the range of $3.20 to $3.40 from $2.75 to $3.05. The company attributed the increase to continued cost cutting and strong results from its non-utility operations.

Still, the company is cautious about the future.

“Despite our strong year-to-date performance, we are not out of the woods,” commented Anthony F. Earley Jr., DTE Energy chairman and CEO.

“Our utilities, in particular, face many challenges as we enter 2010 as a result of the weak Michigan economy. At the same time, the company is faced with significant federally-mandated environmental investments,” he said.

Zacks Consensus Estimates Rise

Given the company’s increased full-year guidance, covering analysts have been adjusted estimates for both the third quarter and the full year.

The third quarter Zacks Consensus Estimate has risen 6 cents to 99 cents in the last 7 days with 2 out of 5 covering analysts raising during that time.

The full-year Zacks Consensus Estimate has dropped 2 cents to $3.30 in the last 7 days which would move the estimate to the exact middle of the company’s guidance range. 3 out of 4 analysts raised in the last month.

DTE Energy is scheduled to report third quarter results on Oct 30.

DTE Energy Surprised by 240% in the Second Quarter

On July 2, DTE Energy reported second quarter results which blew by the Zacks Consensus Estimate by 36 cents. Earnings per share was 51 cents which far outstripped last year’s results of 17 cents a share. The big beat could be attributed to cost cutting in the quarter.

Value Fundamentals

DTE Energy is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book of 11.49. Additionally, the stock pays a large dividend with a current yield of 5.60%.

Zacks Investment Research
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