Dominion Energy’s fourth-quarter EPS
Dominion Energy (D), the third-largest utility by market cap, reported its fourth-quarter and fiscal 2018 earnings on February 1. The company reported an operating EPS of $0.89, which missed the consensus estimates for the quarter ending December 31. Dominion Energy posted an EPS of $0.91 in the fourth quarter of 2017. The extended outage at the Millstone power plant and lower renewable energy investment tax credits had a negative impact on Dominion Energy’s earnings during the quarter.
For fiscal 2018, Dominion Energy had an EPS of $4.05, which is ~13% higher compared to 2017. Dominion Energy stock has been under pressure from the last few months. So far this year, Dominion Energy has fallen more than 1%, while broader utilities (XLU) have risen almost 6%.
Dominion Energy posted total revenues of $3.36 billion in the fourth quarter—an increase of ~5% compared to the same quarter in 2017. The company’s 2018 revenues increased 6% compared to 2017. Dominion Energy’s total number of customers increased 1%, while the total electricity delivered to the Retail segment rose 3% in the fourth quarter—compared to the fourth quarter of 2017.
Dominion Energy provided a cost and schedule update on the Atlantic Coast pipeline project. The project is expected to be in service by early 2021. The project is estimated to cost $7.0 billion–$7.5 billion, excluding financing costs.
Dominion Energy has given an earnings guidance range of $4.05–$4.40 per share for 2019. The company has maintained the earnings growth rate of 6%–8% through 2020, which is relatively higher than utilities at large. Dominion Energy completed the acquisition of its MLP subsidiary, Dominion Midstream Partners, on January 28.