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What to Expect from Dominion Energy in Q1?



Share dilution 

Dominion Energy (D) is scheduled to report its first-quarter earnings on May 3. Based on the consensus estimates, Dominion Energy will report an EPS of $1.11 for the quarter ending March 31. In the same quarter last year, the company reported an EPS of $1.14. For fiscal 2018, Dominion Energy earned $4.05 per share, which was ~13% higher compared to 2017. Dominion Energy stock has risen ~7% in 2019. The stock has underperformed broader utilities (XLU) (VPU).

D eps

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Expect higher revenues

According to the consensus estimates, Dominion Energy will report total revenues of $4.86 billion for the quarter ending March 31. In the same quarter last year, the company reported revenues of $3.47 billion. Dominion Energy completed its SCANA merger early this year. Analysts expect Dominion Energy’s revenues to grow more than 40% YoY (year-over-year) due to contributions from SCANA.

Dominion Energy hiked the Atlantic Coast Pipeline project’s estimated cost to $7.0 billion–$7.5 billion, excluding financing costs, in the last quarterly earnings. The natural gas pipeline that travels from West Virginia to North Carolina is expected to be in service by early 2021. Southern Company (SO) and Duke Energy (DUK) are co-owners in the project.

Dominion Energy has given an EPS guidance range of $4.05–$4.40 for 2019. The company maintained its 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.

Top utilities NextEra Energy (NEE) and American Electric Power (AEP) have reported their first-quarter earnings. Both companies beat the consensus estimates.


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