X
<

Here's What Differentiates Dominion Energy from Its Peers

PART:
1 2 3 4 5 6 7 8 9 10 11 12 13
Part 5
Here's What Differentiates Dominion Energy from Its Peers PART 5 OF 13

A Look at Dominion Energy’s Earnings Trends

Dominion’s earnings

Earnings stability is extremely important for utility companies and their investors because it facilitates dividend payments. Dominion Energy’s (D) earnings were notably stable in the last few years and experienced earnings growth above the industry average.

Dominion Energy management has given a 2017 earnings guidance of $3.40–$3.90 per share. It’s targeting earnings growth of 10% in 2018 compared to 2017. Utilities, on average, are looking for an earnings growth of 4%–6% per year for the next few years.

A Look at Dominion Energy’s Earnings Trends

Interested in D? Don't miss the next report.

Receive e-mail alerts for new research on D

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Superior earnings growth

At $52 billion in market capitalization, Dominion Energy is the third-largest utility holding company among the S&P 500 utilities (XLU). Its large regulated operations facilitate stable, predictable earnings. Its above-average earnings growth and stability could continue to contribute to its premium dividend growth going forward.

Although Dominion Energy’s five-year net profit margin averaged 15%, which was higher than the industry average (VPU), its net income growth was fairly low in this period. In the last five years, its net income rose 2% compounded annually. Its mainstay, the electricity business, witnessed tepid growth due to dull electricity demand growth in the last few years.

Dominion Energy’s gas distribution operations after the Questar acquisition lowered its dependence on the electricity segment. Its soon-to-be-completed Cove Point Liquefaction facility is expected to improve its earnings growth in the coming years.

X

Please select a profession that best describes you: