NEW YORK (TheStreet) -- Shares of MDU Resources Group Inc. (MDU) are lower by 5.97% to $28.37 in mid-morning trading on Monday, after the company announced it lowered its 2014 adjusted earnings guidance to between $1.40 and $1.50 per share, compared to its previous guidance of $1.50 to $1.65 per share.
Analysts polled by Thomson Reuters are expecting the diversified natural resources company to post earnings of $1.59 for the 2014 fiscal year.
MDU Resources said it is facing challenges at the Paradox Basin in the western U.S., which led the company to lower its full year earnings guidance.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
"As we noted during our last earnings conference call in August, the Paradox Basin is both very promising and at times very challenging. Its unique characteristics are causing operational issues that we believe are short term, but which will lower our expected growth in oil production to a range of 3 to 7 percent this year," said company CEO David Goodin.
Separately, TheStreet Ratings team rates MDU RESOURCES GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MDU RESOURCES GROUP INC (MDU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."