Dominion Energy Inc. D is scheduled to release second-quarter 2020 earnings on Jul 31, before the market opens. This utility delivered a negative earnings surprise of 0.9% in the last reported quarter.
Let’s see how things have shaped up before the upcoming earnings announcement.
Factors to Note
The company generates a substantial portion of regulated electric and gas revenues from residential customers. Due to extended stay-at-home directives for checking the coronavirus spread, residential demand increased, which is likely to have aided its second-quarter performance. Warmer summer temperature in June is also expected to have boosted demand.
However, higher share count and lower sales to commercial and industrial customers in the second quarter due to lockdown are expected to have offset these positives to some extent.
Expectation
Dominion expects second-quarter earnings in the range of 75-85 cents per share. The Zacks Consensus Estimate for the same is pegged at 83 cents per share, indicating growth of 7.8% from the year-ago reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Dominion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
Dominion Energy Inc. Price and EPS Surprise
Dominion Energy Inc. price-eps-surprise | Dominion Energy Inc. Quote
Earnings ESP: The company’s Earnings ESP is -2.38%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, it carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Investors can consider the following players from the same industry that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
WEC Energy Group WEC is slated to release second-quarter 2020 results on Aug 4. It has an Earnings ESP of +0.96% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CenterPoint Energy, Inc. CNP is slated to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +7.87% and a Zacks Rank #3.
Pinnacle West Capital Corporation PNW is slated to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +5.07% and a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research