DTE Energy to Release Q3 Earnings: What's in Store for the Stock?

DTE Energy DTE is scheduled to release third-quarter 2025 results on Oct. 30, before market open. The company delivered a negative earnings surprise of 0.7% in the last reported quarter. 

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors That Might Have Impacted DTE’s Q3 Performance

DTE Energy is expected to have continued to benefit from its strategic investments, which are aimed at infrastructure improvements and grid resilience. The company’s ongoing efforts to upgrade its electric infrastructure — including installing smart grid devices — have enhanced system reliability and operational efficiency. 

These efforts have already prevented more than 16,000 outages year to date across DTE’s electric service territory, reducing service interruptions and improving customer satisfaction. Such reliability improvements are likely to have resulted in steadier electricity sales and reduced restoration costs, thereby supporting revenue growth and overall performance in the third quarter. The company’s quarterly earnings are also expected to have benefited from its solid sales growth expectation. 

The July-September quarter had a range of temperature patterns across DTE Energy's service areas. Heavy rainfall and flash flooding marked the month of July. Hot and humid conditions prevailed at the start of August, making it feel warmer than it was. Throughout most of September, southeast Michigan experienced above-average temperatures, with the closing days resembling midsummer. To conclude, the overall impact of weather fluctuations on the company’s third-quarter results is expected to be moderate.

However, higher operation and maintenance expenses might have offset some of the positives in the to-be-reported quarter.

DTE’s Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at $2.10 per share, indicating a year-over-year decrease of 5.4%.

The Zacks Consensus Estimate for revenues is pinned at $3.02 billion, implying 3.9% growth year over year.

The Zacks Consensus Estimate for total DTE Electric sales is pinned at 14,763.2 thousand megawatt-hour, up 4.1% from the year-ago quarter’s registered figure. The year-over-year improvement was primarily due to higher volumes sold to residential customers.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for DTE Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
 

DTE Energy Company Price and EPS Surprise

DTE Energy Company price-eps-surprise | DTE Energy Company Quote

Earnings ESP: The company’s Earnings ESP is -0.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, DTE Energy carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same industry, as these have the right combination of elements to post an earnings beat this reporting cycle.

Xcel Energy XEL is likely to come up with an earnings beat when it reports third-quarter results on Oct. 30. It has an Earnings ESP of +0.38% and a Zacks Rank #3 at present.

XEL’s long-term (three to five years) earnings growth rate is 7.44%. The Zacks Consensus Estimate for earnings is pinned at $1.31 per share, which implies a year-over-year increase of 4.8%. 

Eversource Energy ES is likely to come up with an earnings beat when it reports third-quarter results on Nov. 4. It has an Earnings ESP of +5.13% and a Zacks Rank #3 at present.

ES’ long-term earnings growth rate is 5.86%. The Zacks Consensus Estimate for earnings is pinned at $1.12 per share, indicating a year-over-year decrease of 0.9%.

Alliant Energy LNT is likely to come up with an earnings beat when it reports third-quarter results on Nov. 6. It has an Earnings ESP of +0.43% and a Zacks Rank #3 at present.

LNT’s long-term earnings growth rate is 6.57%. The Zacks Consensus Estimate for earnings is pinned at $1.17 per share, indicating a year-over-year increase of 1.7%.

 

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research