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What's in the Cards for Dominion (D) this Earnings Season?
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Dominion Resources, Inc. (D - Free Report) will release third-quarter 2016 financial results before the market opens on Oct 31. Last quarter, this electric utility reported in-line earnings. Let’s see how things are shaping up at the company prior to this announcement.
Factors to Consider
In the third quarter, this utility expects its bottom line hit by share dilution and the absence of a farm-out transaction.
For the quarter, management anticipates operating earnings in the range of 95 cents to $1.10 per share, compared with $1.03 earned in the year-ago period. Above-average temperatures are likely to contribute to the top line.Bottom-line drivers for the third quarter include revenues from growth projects and lower capacity expenses for Virginia Power.
Earnings Whispers
Our proven model does not conclusively show that Dominion Resources is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Most Accurate estimate is pegged at $1.04, while the Zacks Consensus Estimate is $1.08, resulting in an Earnings ESP of -3.70%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Though Dominion Resources’ Zacks Rank #3 increases the predictive power of the ESP, its -3.70% ESP makes surprise prediction difficult this quarter.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the utility space worth considering on the basis of our model, as they have the right combination of elements to post an earnings beat this quarter:
Avista Corp. (AVA - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. It is slated to report earnings on Nov 1.
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #2. It is slated to report earnings on Oct 26.
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What's in the Cards for Dominion (D) this Earnings Season?
Dominion Resources, Inc. (D - Free Report) will release third-quarter 2016 financial results before the market opens on Oct 31. Last quarter, this electric utility reported in-line earnings. Let’s see how things are shaping up at the company prior to this announcement.
Factors to Consider
In the third quarter, this utility expects its bottom line hit by share dilution and the absence of a farm-out transaction.
For the quarter, management anticipates operating earnings in the range of 95 cents to $1.10 per share, compared with $1.03 earned in the year-ago period. Above-average temperatures are likely to contribute to the top line.Bottom-line drivers for the third quarter include revenues from growth projects and lower capacity expenses for Virginia Power.
Earnings Whispers
Our proven model does not conclusively show that Dominion Resources is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Most Accurate estimate is pegged at $1.04, while the Zacks Consensus Estimate is $1.08, resulting in an Earnings ESP of -3.70%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
DOMINION RES VA Price and EPS Surprise
DOMINION RES VA Price and EPS Surprise | DOMINION RES VA Quote
Zacks Rank: Though Dominion Resources’ Zacks Rank #3 increases the predictive power of the ESP, its -3.70% ESP makes surprise prediction difficult this quarter.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the utility space worth considering on the basis of our model, as they have the right combination of elements to post an earnings beat this quarter:
CMS Energy Corp. (CMS - Free Report) scheduled to report earnings on Oct 27. It is has an Earnings ESP of +3.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Avista Corp. (AVA - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. It is slated to report earnings on Nov 1.
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #2. It is slated to report earnings on Oct 26.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>