DTE Energy Company (DTE), founded in 1849 and headquartered in Detroit, Michigan, is a leading diversified energy company. With a market cap of $25.7 billion, DTE provides innovative energy solutions, including electricity and natural gas services, to millions of customers. The company is poised to release its fourth-quarter earnings on Thursday, Feb. 13.
Ahead of this event, analysts project DTE Energy to report a profit of $1.56 per share, down 20.8% from $1.97 per share in the year-ago quarter. The company has met or beaten Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion.
Its adjusted earnings of $2.22 per share in the last reported quarter outpaced the consensus estimates by 18.7%. DTE Energy's Q3 beat was driven by strong performance in the DTE Electric segment.
For fiscal 2024, analysts expect DTE to report an EPS of $6.75, up 17.8% from $5.73 in fiscal 2023. Moreover, EPS is expected to increase 6.8% year-over-year to $7.21 in fiscal 2025.
DTE Energy's shares have climbed 18.5% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 25% gains and the Utilities Select Sector SPDR Fund’s (XLU) 31.3% return over the same period.
DTE Energy has underperformed compared to the broader market and its peers, mainly due to concerns about its reliance on fossil fuels and potential regulatory challenges. The company has been actively investing in renewable energy and diversifying its portfolio.
Following its Q3 earnings release on Oct. 24, DTE Energy's shares experienced a slight decline. The company reported revenue of $2.91 billion, reflecting a modest year-over-year increase. So far this year, DTE has invested over $3 billion and plans to exceed $4 billion in 2024. These investments are aimed at modernizing the electric grid, transitioning to cleaner energy sources, and improving the safety and reliability of its natural gas infrastructure.
Analysts' consensus view on DTE Energy’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a "Moderate Buy," and seven indicate a “Hold.”
The average analyst price target for DTE is $136.89, indicating a 10.5% potential upside from the current levels.
