DTE Energy Co. (DTE) confirmed its fiscal 2009 earnings per share guidance of $3.20 to $3.40. In addition, DTE Energy confirmed its 2010 outlook of $545 million to $610 million in operating earnings. The company also received a regulatory approval by the Michigan Public Service Commission in its electric utility rate case. This rate hike provides solid support for Detroit Edison’s 2010 outlook of $405 million to $435 million in operating earnings.
 
Incorporated in 1995, Detroit, Michigan-based DTE Energy is a holding company with subsidiaries engaged in regulated and unregulated energy businesses. Detroit Edison Company and Michigan Consolidated Gas Company are its largest regulated subsidiaries. DTE Energy also has four non-utility segments engaged in a variety of energy-related business. DTE Energy’s unregulated businesses include gas pipelines and storage, unconventional gas exploration, development and production; power and industrial projects and coal transportation and marketing, and energy marketing and trading operations.
 
DTE Energy is trading at a premium to its peers like PPL Corp. (PPL), NRG Energy Inc. (NRG), Progress Energy Inc. (PGN), and Ameren Corp. (AEE). Going forward, stable regulated utility operations, beneficial regulatory policies in Michigan, higher rates, strong balance sheet, and stable dividend support our bullish outlook for the company.
 
However, the present unfavorable macro backdrop, lower demand for electricity, the dismal Michigan economy, federally mandated environmental investments and pending regulatory cases continue to restrain valuation. Thus, we reiterate our Neutral recommendation on DTE Energy.
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Read the full analyst report on “AEE”
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