Dominion Energy (D) Q4 Earnings Top, Revenues Miss Estimates

Dominion Energy Inc. (NYSE:D) reported fourth-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%. Operating earnings came near the midpoint of the company’s guided range of $1.10-$1.25 per share. The bottom line improved from the year-ago earnings of 89 cents per share, aided by strong contribution from its business units.

GAAP earnings were $1.32 per share compared with 97 cents in the year-ago quarter.

Total Revenues

Dominion Energy’s total revenues came in at $4,475 million, lagging the Zacks Consensus Estimate of $4,876 million by 8.2% but improving 33.1% from $3,361 million in the year-ago quarter.

Highlights of the Release

Total operating expenses increased 24% year over year to $3,134 million due to higher electric fuel and purchase gas prices, as well as an increase in operating and maintenance costs.

Interest and related charges in the reported quarter were $401 million, down 8.9% from the year-ago period.

Dominion Energy announced that it is committed to achieve net zero carbon dioxide and methane emissions from power generation and gas infrastructure operations by 2050.

Segment Details

Dominion Energy Virginia: Net income from this segment was $403 million, up 21% year over year.

Gas Transmission & Storage: The segment’s net income was $360 million, increasing 40.1% year over year.

Gas Distribution: Net income from this segment was $173 million, down 46.6% on a year-over-year basis.

Dominion Energy South Carolina: Net income from this segment was $98 million.

Contracted Generation: The segment’s net income was $114 million, which increased substantially from $5 million in the year-ago period.

Corporate and Other: The segment’s net loss was $160 million, wider than a loss of $121 million in the year-ago quarter.

Guidance

For first-quarter 2020, Dominion Energy expects operating earnings within $1.05-$1.25 per share. The company had reported earnings of $1.10 per share in the year-ago period. The midpoint of the above guided range is $1.15, higher than the current Zacks Consensus Estimate for the period of $1.10.

Dominion Energy initiated its 2020 earnings guidance in the range of $4.25-$4.60 per share. The company had recorded earnings of $4.24 per share in 2019. Expected positive drivers for 2020 earnings include higher regulated investment across electric and gas businesses, as well as lower financing costs due to decrease in average debt balance. The midpoint of the above guided range is $4.425, higher than the current Zacks Consensus Estimate for the period of $4.35.

Zacks Rank

Currently, Dominion Energy has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

NextEra Energy, Inc. (NYSE:NEE) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.

FirstEnergy Corporation (NYSE:FE) came up with fourth-quarter 2019 operating earnings of 55 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.

Exelon Corporation’s (NASDAQ:EXC) fourth-quarter 2019 operating earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 73 cents by 13.6%.

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