MDU Resources Group Soars 1.65% on Strong Q1 Earnings

MDU Resources Group(MDU)跌0.62%。，The share price rose to its highest level since February 2025 today, with an intraday gain of 1.65%.

The strategy of buying MDU shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 3.98%. While this is lower than the overall market's performance, it still indicates a reasonable return. The strategy's Sharpe ratio was 0.79, suggesting good risk-adjusted returns. However, the maximum drawdown of -12.91% highlights the strategy's vulnerability during market downturns. Overall, the strategy performed reasonably well but came with significant volatility.

MDU Resources Group's stock price has been influenced by a strong start to 2025, as demonstrated by its first-quarter financial results. The company reported operating revenues of $674.8 million, surpassing analyst estimates, and achieved diluted earnings per share from continuing operations of $0.40, which exceeded expectations. Significant earnings growth was observed in the pipeline and natural gas distribution segments, driven by expansion projects, increased storage demand, rate relief, and higher sales volumes due to colder weather. Despite challenges in the electric segment, MDU Resources managed to increase its operating income and cash flow significantly, which are crucial for its transition to a pure-play regulated energy delivery business. The company has affirmed its earnings guidance for 2025, with expected EPS between $0.88 and $0.98, and continues to focus on strategic initiatives, including several pipeline projects. These factors contribute to the company's momentum and position it well for future growth.