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S&P 500 (NYSE:SPY) component DTE Energy (NYSE:DTE) will unveil its latest earnings on Wednesday, October 24, 2012. DTE Energy provides electricity and natural gas sales, distribution, and storage services throughout southeastern Michigan.
DTE Energy Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.13 per share, a rise of 5.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.11. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.13 during the last month. Analysts are projecting profit to rise by 2.7% compared to last year’s $3.83.
Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 86 cents per share against a mean estimate of net income of 69 cents per share. In the first quarter, it missed forecasts by 25 cents.
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A Look Back: In the second quarter, profit fell 27.7% to $146 million (86 cents a share) from $202 million ($1.19 a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.1% to $2.02 billion from $2.03 billion.
Stock Price Performance: From September 20, 2012 to October 18, 2012, the stock price rose $2.91 (5%), from $58.78 to $61.69. The stock price saw one of its best stretches over the last year between July 9, 2012 and July 18, 2012, when shares rose for eight straight days, increasing 3.2% (+$1.89) over that span. It saw one of its worst periods between June 15, 2012 and June 25, 2012 when shares fell for seven straight days, dropping 3.2% (-$1.94) over that span.
Wall St. Revenue Expectations: Analysts are projecting a rise of 4.4% in revenue from the year-earlier quarter to $2.36 billion.
The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 1.3% in the fourth quarter of the last fiscal year, by 11.4% in the first quarter and again in the second quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 7.5% in the first quarter and dropped again in the second quarter.
Analyst Ratings: There are mostly holds on the stock with six of nine analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.16 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.17 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.2% to $2.63 billion while assets rose 3.4% to $3.05 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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