Dominion Energy Anticipates Strong Earnings Growth Despite Analyst Cautions

With a market cap of $45.3 billion, Dominion Energy, Inc. (D) delivers regulated electricity and natural gas services across the United States. The company, headquartered in Richmond, Virginia, operates through its Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy segments.

On Thursday, May 1, before the market opens, the company plans to report its Q1 earnings. Analysts project an EPS of $0.75 per share, marking a 36.4% increase from the $0.55 per share reported in the same quarter last year. Notably, Dominion has beaten analysts’ earnings estimates in three of the last four quarters, with only one miss. The most recent quarter’s EPS of $0.58 exceeded analyst expectations by 7.4%.

For fiscal 2025, analysts forecast an EPS of $3.38, a 22% rise from the $2.77 in fiscal 2024. Looking ahead to fiscal 2026, EPS is projected to grow by 6.5% year-over-year, reaching $3.60.

Over the last year, D shares have increased by 4.5%, outpacing the S&P 500 Index’s ($SPX) 3.8% returns but lagging behind the Utilities Select Sector SPDR Fund’s (XLU) 16.1% rally.

Following its Q4 earnings release on February 12, D shares experienced slight gains. The company reported operating revenue of $3.4 billion, which did not meet analysts’ expectations. However, it reported a substantial operating earnings increase of 93.8% year-over-year, amounting to $504 million. Dominion projects its EPS for the current year will range between $3.28 and $3.52, with operating earnings per share expected to grow between 5% and 7% through 2029.

Despite this growth outlook, analysts maintain a cautious stance with an overall “Hold” rating. Among the 18 analysts covering the stock, three recommend a “Strong Buy,” 14 suggest a “Hold,” and one advises a “Strong Sell.” The mean price target stands at $59.50, indicating a potential upside of 14.3% from current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For additional information, please view the Barchart Disclosure Policy here.

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