DTE Energy Gears Up to Report Q1 Earnings: What's in the Cards?

DTE Energy Company DTE is scheduled to report first-quarter 2025 results on May 1, before market open.

The company delivered an earnings surprise of 3.42% in the last reported quarter. DTE also holds a four-quarter average earnings surprise of 9.74%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors at Play Ahead of DTE’s Q1 Earnings

DTE’s service areas experienced below-normal temperature patterns, accompanied by moderate-to-heavy snowfall, for the first two months of the January-March quarter. However, some of its territories witnessed above-average temperature patterns in March. The below-normal weather pattern is likely to have boosted electricity demand from DTE’s customers for heating purposes this winter. Meanwhile, the above-average temperature pattern might have hurt the same. So, the overall impact of weather on the company’s quarterly revenues can be expected to have been mostly favorable.

However, some parts of its service areas witnessed ice storms, along with freezing rain and heavy snowfall in March, which are likely to have caused outages for some of DTE’s customers. Such outages are likely to have hurt the company’s overall top-line performance.

Solid sales growth expectations, along with cost reduction initiatives, are likely to have boosted the company’s earnings growth. However, the aforementioned adverse weather conditions are likely to have caused damage to some of DTE’s infrastructure, pushing up its operating expenses for restoration. This, along with higher rate base costs, is likely to have adversely impacted the overall bottom-line performance to some extent.

DTE’s Q1 Expectations

The Zacks Consensus Estimate for DTE’s sales is pegged at $3.47 billion, which indicates year-over-year growth of 7.2%.

The Zacks Consensus Estimate for earnings is pegged at $1.98 per share, which calls for a year-over-year rise of 18.6%.

What the Zacks Model Unveils for DTE

Our proven model predicts an earnings beat for DTE this time. 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 the case here, as you will see below.

Earnings ESP: DTE has an Earnings ESP of +1.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Other Stocks to Consider

Here, we have mentioned a few players from the same industry that also have the right combination of elements to beat earnings in the upcoming releases:

Exelon Corporation EXC is slated to report its first-quarter 2025 results on May 1, before market open. It has an Earnings ESP of +5.83% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for EXC’s first-quarter sales is pegged at $6.36 billion, which indicates a 5.3% improvement from the year-ago quarter’s figure. The consensus estimate for first-quarter earnings stands at 78 cents per share, which suggests year-over-year growth of 13%.

American Electric Power AEP is set to report first-quarter 2025 earnings on May 6, before market open. It has an Earnings ESP of +0.54% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for first-quarter sales is pegged at $5.34 billion, which indicates a 6.7% improvement from the year-ago quarter’s figure. The consensus estimate for first-quarter earnings stands at $1.39 per share, which implies year-over-year growth of 9.5%.

Evergy, Inc. EVRG is set to report its first-quarter 2025 results on May 8, before market open. It has an Earnings ESP of +5.70% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for first-quarter sales is pegged at $1.41 billion, which indicates a 6.2% improvement from the year-ago quarter’s figure. The consensus estimate for first-quarter earnings stands at 64 cents per share, which implies year-over-year growth of 18.5%.

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

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