DTE Energy Company (DTE) yesterday raised 2009 earnings guidance boosted by strong performance. The company now expects 2009 operating EPS to be within the range of $3.20 to $3.40, up from the previously expected range of $2.75 to $3.05.
DTE Energy is expected to release its third quarter fiscal 2009 earnings on Oct 29. As per the Zacks Consensus Estimate, the company is expected to register an EPS of 89 cents in the quarter.
DTE Energy attributed the upswing in guidance to strong performance from its ongoing infrastructure improvement program, one-time cost reductions as well as strong results from its non-utility operations and holding company tax benefits. As per company estimates, the company has been able to achieve more than $100 million in cost savings in fiscal 2009 through its ongoing improvement program, while also improving utility service reliability and customer service.
However, the company is apprehensive about its utility subsidiaries Detroit Edison Company and Michigan Consolidated Gas Company’s performance owing to weak Michigan economy and federally mandated environmental investments.
DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Detroit Edison Company is the company’s principal operating subsidiary, providing electricity to 2.2 million customers in southeastern Michigan. Michigan Consolidated Gas Company is a natural gas utility with nearly 1.3 million customers in Michigan.
We maintain our market Neutral recommendation on the stock.
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