Dominion Energy Inc. D is scheduled to release fourth-quarter 2023 earnings on Feb 22, before market open, following a previous quarter where the utility delivered a surprise by reporting negative earnings of 1.28%.
Before we delve into Dominion Energy’s promising future, let’s take a magnifying glass to inspect the factors that have shaped up its upcoming earnings announcement.
Factors Influencing Earnings
The company’s fourth-quarter earnings are expected to have received an updraft from regulated investments, augmented sales volume, and effective cost management. The economic upswing, surging population in Virginia and South Carolina, and an upsurge in customers in its electric distribution wing are all set to have given wings to earnings in the fourth quarter. However, higher DD&A expenses, the planned shutdown of Millstone Power Station, persistent high interest rates, and DEV rider rate reduction might have cast a shadow over the company’s fourth-quarter results.
Projections
As Dominion Energy eagerly grapples with its Q4 earnings, the company expects a 35-cent earnings per share (EPS), marking a significant decline from the year-ago reported figure of $1.06. The Zacks Consensus Estimate stands at 40 cents, indicating a downturn of nearly 62.3% from the aforementioned quarter.
Quantitative Model Predicts
Our well-oiled quantitative model hails the foreshadowed earnings of Dominion Energy. The concoction of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) has slingshotted the odds of an earnings beat in favor of the company. A combination that has indeed unfurled in the case of Dominion Energy.
Dominion Energy’s Market Performance
The company’s Earnings ESP stands at +0.63%, while concurrently harnessing a Zacks Rank #3
Alternatives to Consider
For investors looking to diversify their portfolio in the same sector, ONE Gas, Sempra Energy, and Southwest Gas present themselves as potential players set to announce an earnings beat for the fourth quarter.
ONE Gas, with an Earnings ESP of +0.26% and a Zacks Rank of 3, is slated to announce its earnings after the market close on Feb 21. On the other hand, Sempra Energy, due to report its Q4 earnings on Feb 27 before the market opens, boasts an Earnings ESP of +1.18% and a Zacks Rank of 3. Lastly, Southwest Gas, geared up to reveal its Q4 earnings on Feb 28, has an Earnings ESP of +1.45% and also carries a Zacks Rank of 3 at present.
Looking to keep tabs on upcoming earnings announcements? Strap into the Zacks Earnings Calendar.
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