MDU - 2Q20: After Earnings Release, Shares Up Over 7%; MDU Pays Almost 4%

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MDU, link here:

• MDU Resources reported Q2 revenue increase of 4.6% Y/Y to $1.36B, and earnings of $99.7M, an increase of 61% Y/Y.
• construction materials business revenues were $621.1M (+4.2% Y/Y) and backlog of work at June 30 was $875M; Construction services business revenue was $497.2M (+6.9% Y/Y) and backlog of work at June 30 was $1.31B.
• the electric and natural gas utility earned $11.2M vs. $1.2M in 2Q19, benefiting from lower operating costs, higher investment returns and the absence of a write-down on a non-utility investment recorded, and pipeline business earned $9M (+26.7% Y/Y).
• Q2 Operating margin expanded by 268 bps to 10.2%.
• Q2 EBITDA from continuing operations was $219.8M (+35.8% Y/Y), and margin improved by 370 bps to 16.1%.
• net cash provided by operating activities YTD was $261.4M, compared to cash used $22.9M a year ago.
• FY20 Guidance, raised:
  
• EPS of $1.65 to $1.85 (prior $1.50 to $1.70) vs. $1.60 consensus.
  
• Construction services revenues in the range of $1.9B to $2.1B (prior $1.85B to $2.05B) with margins comparable to 2019 and construction materials revenues in the range of $2.2B to $2.4B (prior $2.1B to $2.3B) with margins slightly higher than 2019.

Shares are up 7% and MDU pays almost 4%.