Overview
MDU Resources Q3 revenue beats analyst expectations, driven by pipeline segment growth
Income from continuing operations increased, offset by higher operation and maintenance expenses
Outlook
MDU Resources narrows 2025 EPS guidance to $0.90-$0.95
Company assumes normal weather and economic conditions for Q4
MDU Resources maintains long-term EPS growth rate of 6%-8%
Result Drivers
PIPELINE GROWTH - Earnings in the pipeline segment increased by 11.3%, driven by expansion projects and strong demand for short-term contracts
UTILITY CUSTOMER GROWTH - Income from continuing operations increased due to customer growth projects and rate recovery across multiple jurisdictions
ELECTRIC SEGMENT CHALLENGES - Electric earnings declined due to higher operation and maintenance expenses, particularly from increased payroll and outage-related costs
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $315.10 mln | $305.01 mln (2 Analysts) |
Q3 Net Income | $18.40 mln | ||
Q3 Operating Expenses | $275.30 mln | ||
Q3 Operating Income | $39.80 mln | ||
Q3 Pretax Profit | $20.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 $21.00, about 6.2% above its November 5 closing price of $19.69
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nPn1Zd369a
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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.)