Dominion Energy Inc. (D) is scheduled to announce its third-quarter 2023 earnings on November 3, before the market opens. In the previous quarter, the utility surprised investors with a 10.42% earnings beat.
Let’s take a closer look at the factors that have influenced Dominion Energy’s performance leading up to this earnings announcement.
Factors to Consider
Dominion Energy’s third-quarter earnings are expected to benefit from regulated investments, higher sales volume, and efficient cost management. The completion of several transmission projects ahead of schedule is also anticipated to have a positive impact on earnings. Additionally, economic development, population growth in South Carolina, and an increase in customers in its gas distribution business will contribute to earnings growth.
On the flip side, higher DD&A (Depreciation, Depletion, and Amortization) expenses, the planned outage of the Millstone Power Station, increased interest expenses, and the sale of interest in Cove Point are expected to have a negative impact on third-quarter earnings. Furthermore, the rate reduction at Dominion Energy Virginia which took effect at the beginning of the quarter is likely to affect earnings adversely.
Earnings Outlook
Dominion Energy expects third-quarter earnings in the range of 72-87 cents per share, compared to $1.11 reported in the same quarter last year. The Zacks Consensus Estimate for the quarter is 78 cents, signifying a year-over-year decline of 29.73%.
Quantitative Model Prediction
Our quantitative model does not predict an earnings beat for Dominion Energy this time around. Typically, a combination of a positive Earnings ESP (Earnings Expected Surprise Prediction) and a favorable Zacks Rank (1 to 3) would increase the odds of an earnings beat. However, Dominion Energy currently holds a Zacks Rank #4 (Sell) and an Earnings ESP of -2.92%. This suggests that an earnings beat is less likely.
Dominion Energy Inc. Price and EPS Surprise
Earnings ESP: -2.92%
Zacks Rank: #4 (Sell)
Other Stocks to Consider
If you’re looking for potential stocks with a higher chance of an earnings beat, here are a few options in the same industry:
- Consolidated Edison (ED) is anticipated to report an earnings beat when it announces its third-quarter results on November 2, after the market closes. It currently holds an Earnings ESP of +3.93% and a Zacks Rank #2 (Buy).
- TransAlta (TAC) is likely to deliver an earnings beat when it reports its third-quarter results on November 7, before the market opens. It currently has an Earnings ESP of +15.26% and a Zacks Rank #3 (Hold).
- Ameren Corporation (AEE) is expected to outperform expectations when it releases its third-quarter results on November 8, after the market closes. It has an Earnings ESP of +0.22% and a Zacks Rank #3 (Hold).
Stay updated on upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
