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A month has gone by since the last earnings report for Dominion Energy (D). Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dominion Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Dominion Beats Q3 Earnings Estimates, Tightens View
Dominion Energy Inc. reported third-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%. Operating earnings came near the upper end of the company’s guided range of $1.00-$1.20 per share. Strong contribution from business units and favorable weather aided the company to improve from the year-ago earnings of $1.15.
GAAP earnings were $1.17 per share compared with $1.30 in the year-ago quarter.
Total Revenues
Dominion’s total revenues came in at $4,269 million, lagging the Zacks Consensus Estimate of $4,414 million by 3.3% but improving 23.7% from $3,451 million in the year-ago quarter.
Highlights of the Release
Total operating expenses increased 28.4% year over year to $2,955 million due to higher electric fuel and purchase gas prices, and an increase in operating and maintenance costs.
Interest and related charges in the reported quarter were $451 million, up 19.3% from the year-ago period.
In the reported quarter, the electric delivery customer base increased by 768,806 from the prior-year level. Electricity delivery volumes also improved 29.9% year over year to 31,193 gigawatt hours in the third quarter.
Segment Details
Power Delivery: Net income from this segment was $185 million, up 13.5% year over year.
Power Generation: The segment’s net income was $490 million, increasing 18.4% year over year.
Gas Infrastructure: Net income from this segment was $232 million, down 12.1% on a year-over-year basis.
Southeast Energy: Net income from this segment was $147 million.
Corporate and Other: The segment’s net loss was $87 million compared with a loss of $83 million in the year-ago quarter.
Financial Update
Cash, restricted cash and cash equivalents as of Sep 30, 2019 were $378 million compared with $268 million on Dec 31, 2018.
Long-term debt as of Sep 30, 2019 was $29.83 billion compared with $26.32 billion at the end of 2018.
Cash from operating activities in the first nine months of 2019 was $3.7 billion compared with $3.71 billion in the same period last year.
Guidance
For fourth-quarter 2019, Dominion expects operating earnings within $1.10-$1.25 per share. The company had reported earnings of 89 cents per share in the year-ago period. The midpoint of the above guided range is $1.175, below the current Zacks Consensus Estimate for the period of $1.09.
For 2019, Dominion narrowed its earnings guidance to the range of $4.15-$4.30 per share from the earlier projection of $4.05-$4.40. The company had recorded earnings of $4.05 per share in 2018. The midpoint of the above guided range is $4.225, higher than the current Zacks Consensus Estimate for the period of $4.15.