MDU Resources Q3 revenue beats estimates, reaffirms 2026 EPS outlook
Overview
U.S. utility and pipeline operator's Q3 revenue beat analyst expectations
Adjusted EPS and adjusted net income for Q3 missed analyst expectations
Company reaffirmed 2026 EPS guidance and advanced Bakken East Pipeline project
Outlook
MDU Resources reaffirms 2026 EPS guidance of $0.93 to $1.00
Company expects 6% to 8% long-term annual EPS growth
2026 outlook assumes normal weather, continued customer growth and constructive regulatory outcomes
Result Drivers
ELECTRIC UTILITY GROWTH - Higher earnings driven by new rates, Badger Wind Farm contributions, and increased retail sales volumes, including strong demand from data centers
NATURAL GAS SEGMENT PRESSURE - Higher operation and maintenance expense, including payroll costs and a loss from discontinued Knott Landfill project, offset benefits from new rates and higher volumes
PIPELINE SEGMENT COSTS - Earnings declined due to higher operation and maintenance expense, advisory costs for Bakken East, and lower storage and transportation activity, partly offset by demand revenue from short-term contracts and expansion projects
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $347.80 mln | $342.55 mln (5 Analysts) |
Q3 Adjusted EPS | Miss | $0.08 | $0.10 (7 Analysts) |
Q3 Adjusted Net Income | Miss | $16.60 mln | $20.97 mln (5 Analysts) |
Q3 Net Income | $14 mln | ||
Q3 Operating Expenses | $300.20 mln | ||
Q3 Operating Income | $47.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline utilities peer group is "buy"
Wall Street's median 12-month price target for MDU Resources Group, Inc. is $23.00, about 16% above its November 4 closing price of $19.82
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)