Dominion Resources’ 4Q16 Revenues Rose 20% but Stock Fell 6%
Dominion posted strong revenue growth in 4Q16
Based in Richmond, Virginia, Dominion Resources (D) reported its 4Q16 and fiscal 2016 results on February 1, 2017. It reported revenues of ~$3.1 billion in 4Q16, ~20% higher than its 4Q15 revenues.
Despite posting earnings in line with analysts’ expectations, Dominion Resources stock fell nearly 6% on the management’s gloomy outlook for 2017. Dominion’s 2017 earnings are expected to be lower than in 2016 due to factors like lower solar investment tax credits and lower revenues from the import contracts at Cove Point. We’ll discuss these factors in more detail later in this series.
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In 4Q16, Dominion Resources’s (D) principal regulated utility, Dominion Virginia Power, reported customer base expansion growth of 1.1% over 4Q15. The increased customer base in 4Q16 boosted Dominion Virginia Power’s electric sales volume nearly 7% year-over-year, positively impacting revenues.
Dominion reported an increase of nearly 11% in its total operating expenses during the quarter, which rose mostly due to increased operations and maintenance expenses.
Utility giants NextEra Energy (NEE) and American Electric Power (AEP) have already reported their 4Q16 earnings. NextEra reported earnings per share (or EPS) of $1.21, posting more than 3% EPS growth year-over-year.