MDU Resources Group Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

MDU Resources Group (NYS: MDU) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Monday, August 1. MDU Resources Group, through its subsidiary, is engaged in electric and natural gas distribution, construction services, pipeline and energy services, natural gas and oil production, construction materials and contracting.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on MDU Resources Group with six of nine analysts rating it hold. Analysts like MDU Resources Group better than competitor Vectren overall. Zero out of six analysts rate Vectren a buy compared to three of nine for MDU Resources Group. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $931.1 million in revenue this quarter. That would represent a rise of 2.7% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.25 per share. Estimates range from $0.21 to $0.30.

What our community says:
CAPS All Stars are solidly backing the stock, with 96.1% awarding it an "outperform" rating. The community at large backs the All Stars with 94.8% granting it a rating of "outperform." Fools are keen on MDU Resources Group, though the message boards have been quiet lately with only 74 posts in the past 30 days. Despite the majority sentiment in favor of MDU Resources Group, the stock has a middling CAPS rating of three out of five stars.

Management:
MDU Resources Group's income has fallen year over year by an average of 5.1%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross and net margins over the past four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

23.6%

24.4%

20.5%

23.2%

Net Margin

4.8%

8.5%

5.4%

5.4%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add MDU Resources Group now.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners