Subscribe to Entrepreneur for $5
Subscribe

MDU Resources' (MDU) Q3 Earnings Miss Mark, Revenues Fall Y/Y

MDU Resources (MDU) posts worse-than-expected Q3 earnings. Also, both the bottom and the top line decrease year over year.

By
This story originally appeared on Zacks

MDU Resources Group Inc. MDU reported third-quarter 2021 operating earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 79 cents by 13.9%. The same declined 10.5% from the year-ago level of 76 cents.

- Zacks

Total Revenues

Total revenues came in at $1,586 million, down 0.1% from $1,587.3 million in the year-ago quarter.

 

MDU Resources Group, Inc. Price, Consensus and EPS Surprise

MDU Resources Group, Inc. Price, Consensus and EPS Surprise

MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote

Operating revenues in the electric, natural gas distribution and regulated pipeline improved 12.9% from the prior-year quarter’s level to $237.1 million. Revenues in non-regulated pipeline, construction materials and contracting, construction services and other segments slid 2.1% from the year-ago quarter’s level to $1,348.9 million.

Highlights of the Release

For the quarter under review, operating expenses of $1,396.8 million increased 1% from the prior-year period’s $1,383.6 million.

Operating income was $189.2 million, down 7.1% year over year.

The company’s interest expenses of $23.4 million were down 1.3% from $23.7 million in the prior-year quarter.

As of Sep 30, 2021, the construction services business had a backlog of $1.27 billion compared to $1.28 billion on Sep 30, 2020.

As of Sep 30, 2021, the construction materials business had a backlog of $652 million, up from $571 million year over year.

Financial Highlights

Cash and cash equivalents as of Sep 30, 2021 were $57.2 million compared with $59.5 million at 2020 end.

Long-term debt amounted to $2,326.7 million as of Sep 30, 2021 compared with $2,211.6 million on Dec 31, 2020.

The company’s net cash provided by operating activities in the first three quarters of 2021 was $365.8 million compared with $481.8 million in the comparable period of 2020.

Guidance

MDU Resources adjusted its 2021 earnings per share guidance to $1.90-$2.05 from the prior expectation of $2-$2.15. This estimate is based on several assumptions, of which worth mentioning are normal weather and a continued addition to the electric and natural gas customer base at 1-2% rate, annually.

In the long term, the utility expects earnings to grow 5-8% on an annual basis.

It reduced its investment plans to $775 million from $806 million in the ongoing year.

Zacks Rank

MDU Resources carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

ONEOK Inc OKE posted third-quarter 2021 operating earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 83 cents by 6%

ONE Gas Inc. OGS reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.

Upcoming Release

Atmos Energy Corporation ATO is scheduled to release fourth-quarter fiscal 2021 operating earnings on Nov 10. The Zacks Consensus Estimate for the same is pegged at 37 cents per share.



Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

ONEOK, Inc. (OKE): Free Stock Analysis Report

 

Atmos Energy Corporation (ATO): Free Stock Analysis Report

 

MDU Resources Group, Inc. (MDU): Free Stock Analysis Report

 

ONE Gas, Inc. (OGS): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research