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MDU Resources' (MDU) Earnings and Revenues Rise Y/Y in Q3

Zacks Equity Research

MDU Resources Group Inc. MDU delivered third-quarter 2019 operating earnings of 68 cents per share. Operating earnings increased 23.6% from the year-ago quarter’s level. The upside was driven by exceptional performance in construction materials and services businesses.

Total Revenues

Total revenues in the third quarter amounted to $1,563.8 million, up 22.1% from $1,280.8 million in the year-ago quarter.

Operating revenues in the electric, natural gas distribution and regulated pipeline as well as the midstream segments increased 4.4% to $209.4 million. Revenues in the non-regulated pipeline and midstream, construction materials and contracting, construction services as well as other segments increased 25.4% to $1,354.4 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

Under pipeline business, Demicks Lake project started operation as scheduled in September.

In the third quarter, operating expenses amounted to $1,374.3 million, up 20.5% from the prior-year quarter’s figure of $1,140.8 million.

Operating income amounted to $189.5 million, up 35.4% year over year.

The company incurred interest expenses of $25.2 million, up from $21 million in the prior-year quarter.

At the end of third quarter, the construction services business had backlog of $1.2 billion, up 34% from $896 million in third quarter of 2018.

At the end of third quarter, the construction materials business had backlog of $747 million, up 27% from $590 million in 2018.

Financial Highlights

Total debt amounted to $2,387 million as of Sep 30, up from $1,915 million as of Sep 30, 2018.

The company’s net cash provided by operating activities in the first nine months of 2019 was $203.1 million compared with net cash provided by operating activities of $317.4 million in the year-ago period.

Guidance

MDU Resources narrowed its previously provided guidance for 2019 earnings per share (EPS), which was forecast in the range of $1.45-$1.60. The company currently expects 2019 EPS in the range of $1.50-$1.60, whose mid-point of $1.55 is higher than the current Zacks Consensus Estimate of $1.50.

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 Releases

ONEOK Inc OKE reported third-quarter 2019 operating earnings of 74 cents per share, in line with the Zacks Consensus Estimate.

ONE Gas OGS reported third-quarter 2019 earnings of 33 cents per share, which lagged the Zacks Consensus Estimate of 34 cents by 2.94%.

Upcoming Release

Sempra Energy SRE is scheduled to release third-quarter 2019 results on Nov 1. The Zacks Consensus Estimate for earnings is pegged at $1.49.

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