MDU Resources Group, Inc. is bracing for a significant earnings report as it prepares to release its Q1 2025 financial results on May 8, 2025. The consensus estimate anticipates a revenue of $0.65 billion, with earnings expected to hit $0.33 per share. These figures come amid a backdrop of fluctuating revenue projections and mixed analyst sentiments regarding the company's financial health.
For the full year 2025, analysts project MDU Resources will generate $1.93 billion in revenue, slightly down from previous estimates of $1.94 billion. However, the forecast for 2026 has seen a positive adjustment, with expected revenues increasing from $1.95 billion to $2.00 billion over the last three months. Earnings estimates for 2025 have also dipped, from $0.97 per share to $0.96 per share, while projections for 2026 have decreased from $1.04 per share to $1.01 per share.
The company’s performance in the previous quarter has raised eyebrows, as MDU Resources reported actual revenues of $0.54 billion for the quarter ending December 31, 2024. This figure fell short of analysts' expectations of $0.79 billion by a staggering 32.26%. Additionally, the company’s earnings of $0.34 per share missed predictions by 12.82%, leading to a sharp decline of 5.89% in stock value following the report.
As of now, MDU Resources' stock is trading at $17.54, and analysts have set a one-year price target averaging $19.75, with a high estimate of $24.00 and a low of $18.00. This average target suggests a potential upside of approximately 12.60% from the current price. Despite the recent downturn, the consensus recommendation from five brokerage firms indicates an "Outperform" status, with an average rating of 1.8 on a scale from 1 (Strong Buy) to 5 (Sell).
In terms of investments, MDU Resources Group has seen a notable increase in institutional stakes. Vanguard Group Inc. boosted its holding by 16.6% in the fourth quarter, now owning 22,997,452 shares valued at $414,414,000. Other significant investors include Norges Bank, which purchased a new position worth approximately $40,857,000, and Hennessy Advisors Inc., which increased its stake by a remarkable 1,098.5%, now holding shares worth about $38,833,000.
Furthermore, Pertento Partners LLP and Brandywine Global Investment Management LLC also expanded their positions significantly, with increases of 90.3% and 300.1%, respectively. Overall, hedge funds and institutional investors own approximately 71.44% of MDU Resources Group’s stock, indicating strong institutional interest in the company.
In addition to these developments, MDU Resources recently declared a quarterly dividend of $0.13, paid on April 1, 2025, to shareholders of record as of March 13, 2025. This dividend represents an annualized yield of 2.98% and reflects a payout ratio of 37.68%, suggesting that the company is committed to returning value to its shareholders even amidst fluctuating earnings.
As the company gears up for its earnings report, analysts are keenly watching for any signs of recovery or further decline. The upcoming report will not only shed light on MDU Resources’ financial health but may also influence its stock price and investor sentiment moving forward.
In related news, MDU Resources Group has been the subject of various research analyst reports. Jefferies Financial Group initiated coverage on the company on January 8, 2025, setting a price objective of $18.00 and a "hold" rating. Conversely, StockNews.com downgraded the company's rating from "hold" to "sell" on February 20, 2025.
One notable insider transaction occurred on February 10, 2025, when Director Dennis W. Johnson purchased 30,000 shares at an average price of $16.64 each, totaling $499,200. Following this acquisition, he now holds 180,166 shares valued at approximately $2,997,962.24, reflecting a 19.98% increase in his position. This transaction was disclosed in a legal filing with the SEC, signaling confidence from insiders amid the company's recent challenges.
MDU Resources operates through four primary segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment is particularly significant, generating, transmitting, and distributing electricity across several states including Montana, North Dakota, South Dakota, and Wyoming. The company maintains an extensive infrastructure comprising 3,400 miles of transmission lines and 4,800 miles of distribution lines, underscoring its critical role in the energy sector.
Looking ahead, the upcoming earnings report will be pivotal for MDU Resources Group, with investors and analysts alike eager to gauge the company's trajectory in a competitive market. As the energy landscape continues to evolve, MDU's ability to adapt and deliver on its financial promises will be under scrutiny.