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MDU Resources (MDU) Q1 Earnings Decline Y/Y, Revenues Up

Zacks Equity Research
·3 min read

MDU Resources Group Inc. MDU delivered first-quarter 2020 operating earnings of 13 cents per share, which fell 38% from the year-ago quarter’s level. The downside was caused by lower investment returns, milder-than-normal weather at its utility operations and an adjustment on a construction contract.

Total Revenues

Total revenues in the first quarter were $1,197.4 million, up 9.7% from $1,091.2 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline as well as the midstream segments fell 4.7% to $418.7 million. Revenues in the non-regulated pipeline and midstream, construction materials and contracting, construction services as well as other segments increased 19.5% to $778.9 million.

MDU Resources Group Inc Price, Consensus and EPS Surprise

 

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

 

Highlights of the Release

In the quarter under review, operating expenses amounted to $1,140.3 million, up 11% from the prior-year quarter’s figure of $1,027 million.

Operating income was $57.1 million, down 11% year over year.

The company incurred interest expenses of $24.6 million, up from $23.4 million in the prior-year quarter.

As of Mar 31, 2020, the construction services business had backlog of $1.27 billion, up 24.5% from the year-ago quarter’s tally.

The construction materials business had backlog of $905 million, down from a backlog of $943 million in the year-ago quarter.

Financial Highlights

Total debt amounted to $2,455 million as of Mar 31, 2020, up from $2,268 million as of March 31, 2019.

The company’s net cash flow from operating activities in the first three months of 2020 was $79.3 million, up from $1.5 million in the first three months of 2019.

Guidance

MDU Resources expects 2020 earnings per share (EPS) in the range of $1.50-$1.70, whose mid-point of $1.60 is in line with the current Zacks Consensus Estimate.

The company plans to invest $599 million through 2020-2024.

Zacks Rank

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

Other Utility Releases

National Fuel Gas Company NFG posted second-quarter fiscal 2020 operating earnings of 97 cents per share, in line with the Zacks Consensus Estimate.

Sempra Energy’s SRE first-quarter 2020 adjusted earnings per share (EPS) came in at $3.08, which surpassed the Zacks Consensus Estimate of $2.32 by 32.8%.

ONEOK Inc. OKE posted first-quarter 2020 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 3.8%.

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