Dominion Energy Prepares to Unveil Q4 Earnings Amid Mixed Expectations
Richmond, Virginia’s Dominion Energy, Inc. (D) engages in both regulated and non-regulated electricity distribution, generation, and transmission. With a market capitalization of $44.9 billion, the company operates through its various segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy.
Analysts Anticipate Strong Earnings Boost
The utility powerhouse will announce its fourth-quarter results before the market opens on Wednesday, February 12. Analysts forecasts a non-GAAP profit of $0.59 per share, marking an impressive 103.5% increase from the $0.29 reported in the same quarter last year. Despite missing Wall Street’s earnings expectations twice in the last four quarters, Dominion managed to outperform estimates on two occasions as well. In the most recent quarter, its adjusted earnings per share (EPS) climbed 27.3% year-over-year to $0.98, surpassing consensus estimates by 6.5%.
Future Earnings Outlook Remains Positive
Looking ahead, experts predict that for the entirety of fiscal 2024, Dominion will report an adjusted EPS of $2.76, a 38.7% increase from the previous year’s $1.99. For fiscal 2025, growth is expected to continue, with an anticipated adjusted EPS of $3.38, reflecting a year-over-year increase of 22.5%.
Stock Performance and Analyst Ratings
During the past 52 weeks, shares of Dominion Energy have risen 21.1%. However, this growth falls short compared to the broader S&P 500 Index’s increase of 25.3% and the Utilities Select Sector SPDR Fund’s (XLU) 32.6% returns within the same period.
After releasing its mixed Q3 results on November 1, Dominion Energy’s stock experienced a slight dip. The company’s operating revenues rose by 3.4% year-over-year to $3.9 billion, although it fell short of Wall Street’s topline expectations by 3.6%. Operating expenses saw a minor decrease, resulting in a significant 18.4% increase in income from operations, reaching $1.2 billion when compared to the previous year.
On a reassuring note, Dominion reaffirmed its full-year non-GAAP EPS guidance of $2.68 to $2.83 for fiscal 2024, along with a solid EPS guidance of $3.25 to $3.54 for fiscal 2025, which helped cushion the stock price drop.
Cautious Optimism from Analysts
Despite this renewed guidance, analysts remain wary about Dominion’s future prospects. The stock currently holds a consensus “Hold” rating among analysts. Out of the 18 professionals monitoring the stock, three suggest a “Strong Buy,” while the majority, 15, recommend a “Hold.” The average price target for Dominion shares stands at $58.87, indicating a potential 10.1% upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
