MDU Resources (MDU) Q1 Earnings Increase Y/Y, Sales Decline
MDU Resources Group Inc. MDU reported first-quarter 2024 operating earnings per share (EPS) of 52 cents, which increased 20.9% from the year-ago quarter’s 43 cents.
GAAP EPS in the reported quarter was 49 cents compared with 41 cents in the prior-year period.
Total Revenues
Net sales decreased 15.1% to $1.21 billion from $1.43 billion in the comparable period of 2023.
Operating revenues in the electric, natural gas distribution and regulated pipeline totaled $586 million, down 13.1% from the prior-year quarter’s figure. Revenues in the non-regulated pipeline, construction services and other segments fell 16.9% from the prior-year levels to $627.8 million.
MDU Resources Group, Inc. Price, Consensus and EPS Surprise
MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote
Highlights of the Release
MDU’s electric and natural gas utility experienced 1.4% customer growth when compared with the first quarter of 2023.
Total operating expenses were nearly $1.01 billion, down 17.8% from the year-ago quarter’s $1.31 billion.
Operating income totaled $135.9 million, up 14.7% from the year-ago quarter’s $118.5 million.
Interest expenses were $28.7 million, up 19.6% year over year.
During the quarter under review, MDU Resources’ construction services business, MDU Construction Services Group, Inc., has rebranded to Everus Construction Group, Inc. in preparation for the planned tax-free spin-off of the business. This is expected to be completed later this year.
Financial Highlights
As of Mar 31, 2024, cash and cash equivalents were $89.3 million compared with $77 million as of Dec 31, 2023.
In the first three months of 2024, net cash provided by operating activities was $165.1 million against $43.6 million used in operating activities in the year-ago period.
Guidance
MDU Resources affirmed its 2024 regulated energy delivery earnings in the range of $170-$180 million and construction services revenues (Everus) in the band of $2.9-$3.1 billion.
The company expects electric and natural gas customer growth to continue at a rate of 1-2% annually.
Management projects to invest $618 million to strengthen its existing operations. From 2024-2028, it plans to invest $2.76 billion.
Zacks Rank
MDU Resources currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
NextEra Energy, Inc. NEE reported first-quarter 2024 adjusted earnings of 91 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 13.8%. The bottom line was also up nearly 8.3% year over year, driven by solid performance of Florida Power & Light Company and NextEra Energy Resources.
The Zacks Consensus Estimate for NEE’s 2024 earnings is pegged at $3.40 per share, indicating a rise of 7.3% from a year ago. Long-term (three-to-five year) earnings growth rate is pegged at 7.99%.
Xcel Energy Inc. XEL reported first-quarter 2024 operating earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents by 10%. The bottom line improved 15.8% from the prior-year quarter’s 76 cents.
The Zacks Consensus Estimate for XEL’s 2024 earnings is pegged at $3.56 per share, implying an improvement of 6.3% from the year-ago levels. The long-term earnings growth rate of XEL is pegged at 6.41%.
Dominion Energy D reported first-quarter 2024 operating earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 7.8%.
The Zacks Consensus Estimate for D’s 2024 earnings is pegged at $2.75 per share, suggesting an increase of 38.2% from the year-earlier levels. The long-term earnings growth rate of D is pegged at 5.44%.
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