A month has gone by since the last earnings report for Dominion Energy (D). Shares have added about 0.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dominion Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dominion Energy Q4 Earnings Beat Estimates, Revenues Lag
Dominion Energy Inc. reported fourth-quarter 2020 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate by 5.2%. Operating earnings also decreased 20.6% year over year. The quarterly earnings were within the guidance range of 73-87 cents per share.
GAAP earnings were 82 cents per share compared with $1.21 in the year-ago quarter.
Total Revenues
Dominion Energy’s total revenues came in at $3,521 million, which lagged the Zacks Consensus Estimate of $3,672 million by 4.1% and declined 9.6% from $3,895 million in the year-ago quarter.
Highlights of the Release
Total operating expenses decreased 9.9% year over year to $2,665 million due to a decline in operating and maintenance costs, along with drop in purchased gas as well as electric fuel and energy-related purchases.
Interest and related charges for the reported quarter were $241 million, down 31.7% from the year-ago period.
Segment Details
Dominion Energy Virginia
: Net income from this segment was $412 million, up 2.2% year over year.
Gas Distribution
: Net income from this segment was $185 million, up 6.9% on a year-over-year basis.
Dominion Energy South Carolina
: Net income from this segment was $93 million, down 5.1% year over year.
Contracted Assets
: The segment’s net income was $107 million, up 34.8% year over year.
Corporate and Other
: The segment’s net loss was $125 million against earnings of $14 million in the year-ago quarter.
Financial Highlights
As of Dec 31, 2020, Dominion Energy had $1,482 million in current assets held for sale, up from $535 million in the corresponding period of 2019.
Total long-term debt as of Dec 31, 2020 was $33,957 million, up from $28,998 million in the comparable period of 2019.
For 2020, cash provided from operating activities was $5,227 million, up 0.4% from $5,204 million in the year-ago period.
Guidance
For first -quarter 2021, Dominion expects operating earnings within $1.00-$1.15 per share. The company reported earnings of $1.109 per share in the year-ago period. The midpoint of the above guided range is $1.075, higher than the current Zacks Consensus Estimate for the period of 95 cents per share.
It expects 2021 earnings per share in the range of $3.70-$4.00. The company maintained long-term earnings and dividend growth rate of 6.5% and 6%, respectively, through 2025.
Growth capital expenditure for the 2021-2025 period is expected to be $32 billion and maintenance capital expenditure for the same time frame is projected at $11.2 billion.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted 8.42% due to these changes.
VGM Scores
Currently, Dominion Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren’t focused on one strategy, this score is the one you should be interested in.
Outlook
Dominion Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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