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

Zacks Equity Research

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-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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