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Will Dominion Energy Report Higher Earnings in Q4 2018?

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Dominion to report on February 1

Dominion Energy (D), the third-largest utility by market cap, will report its fourth-quarter and 2018 earnings results on February 1. The company’s management has given EPS guidance of $0.80–$0.95 for the quarter. In the comparable quarter of 2017, Dominion Energy reported EPS of $0.91.

Dominion Energy stock has continued to lag its peers. It’s fallen more than 8% in the past year, while broader utilities have risen almost 7%. Dominion Energy completed its much-awaited SCANA acquisition early this month.

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Earnings drivers

Wall Street analysts expect Dominion Energy to report total revenue of $3.43 billion in the fourth quarter, implying a 7% YoY rise compared to its revenue in the fourth quarter of 2017. Cove Point exports will likely have a positive impact, while solar investment tax credits and increased financing costs will likely be a drag.

Dominion Energy is one of the fastest-growing utilities in the United States. It aims to grow its operating EPS by 6%–8% compounded annually through 2020. In comparison, utilities (XLU) at large intend to grow 4%–6% per year for the next few years.

Dominion Energy reported better-than-expected earnings in the third quarter of 2018. Its EPS rose 11% YoY in the quarter mainly due to favorable weather in a regulated territory and the contributions from its Cove Point liquefaction project.

Dominion Energy’s peer NextEra Energy (NEE) will report its fourth-quarter earnings results on January 25. Analysts expect its earnings to rise ~23% YoY in the quarter. You can read more in What Could Drive NextEra Energy’s Q4 Earnings?

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