IIt has been about a month since Dominion Energy’s last earnings report (D). Stocks lost around 2% over that time frame, underperforming the S&P 500.
Will the recent negative trend continue until its next earnings release, or is Dominion Energy likely to break out? Before we dive into how investors and analysts have reacted in recent times, let’s take a look at the latest earnings report to better understand the important catalysts.
Dominion Energy’s first quarter earnings exceed estimates and sales lag
Dominion Energy Inc. reported first quarter 2020 operating income of $ 1.09 per share, which is one penny higher than Zacks’ consensus estimate. Operating profit also improved 18.5% year-on-year. Quarterly earnings were in the guided range of $ 1.00 to $ 1.15 per share.
GAAP earnings were $ 1.23 per share from a loss of 34 cents per share in the last year quarter.
Dominion Energy’s total revenues were $ 3,870 million, which is 7.6% lower than Zacks’ consensus estimate of $ 4,191 million and was down 13.9% from $ 4,496 million from the previous year’s quarter.
Highlights of the release
Total operating expenses decreased 16.2% year over year to $ 2,992 million due to lower O&M costs as well as a decrease in purchases of electric fuel and energy.
Interest and related charges for the current quarter were $ 53 million, down 87.7% from the same period last year.
Dominion Energy Virginia: This segment’s net income was $ 434 million, up 1.2% year over year.
Gas distribution: This segment’s net income was $ 251 million, up 12.1% year over year.
Dominion Energy South Carolina: This segment’s net income was $ 102 million, up 8.5% year over year.
Assets under contract: Segment net profit was $ 150 million, up 35.1% year-over-year.
Companies and others: Segment net loss was $ 44 million, compared to a loss of $ 70 million in the prior year quarter.
As of December 31, 2021, Dominion Energy had $ 477 million in cash and cash equivalents, compared to $ 172 million for the corresponding period of 2020.
Total long-term debt as of March 31, 2020 was $ 33,248 million, compared to $ 33,957 million as of December 31, 2020.
In the first quarter of 2021, cash flow from operating activities was $ 1,452 million, down 11.1% from $ 1,633 million for the same period last year.
The company launched its operating income forecast for the second quarter of 2021 in a range of 70 to 80 cents per share. The company reported earnings of 82 cents per share over the last year period. The midpoint of the above guided range is 75 cents, lower than Zacks’ current consensus estimate for the period of 77 cents per share.
He reaffirmed 2021 earnings per share in the $ 3.70 to $ 4.00 range.
Growth capital spending for the 2021-2025 period is expected to be $ 32 billion and nearly 80% of planned spending will be spent on reducing emissions.
How have the estimates evolved since then?
Analysts have remained calm over the past two months, with none of them issuing revisions to their earnings estimates.
At present, Dominion Energy has a good growth score of B, a rating with the same score on the momentum front. Tracing a somewhat similar path, the stock received a C rating on the value side, placing it in the 20% average for this investment strategy.
Overall, the stock has an overall VGM score of B. If you’re not focused on a strategy, this score is the one you should be interested in.
Dominion Energy has a Zacks Rank # 3 (Hold). We expect the stock to come back online in the coming months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.