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Shares of Dominion Resource Inc (D - Free Report) closed 0.95% higher at market close on Thursday, May 4, 2017, owing to better-than-expected results. The company reported a year-over-year increase of 15.85% in net quarterly revenues.
Q1 Performance
Dominion reported non-GAAP earnings per share of $0.97, which came ahead of the Zacks Consensus Estimate and the year-ago earnings of $0.96. Moreover, revenues of $3.384 billion beat the consensus mark of $3.365 billion. Income from operations rose to $1.125 billion from $882 million a year earlier.
Operating Earnings
Dominion Virginia Power reported operating earnings of $125 million, up from $120 million a year ago.
Dominion Energy reported operating earnings of $263 million, up from $186 million a year ago.
Dominion Generation reported operating earnings of $261 million, up from $245 million a year ago.
Corporate and other reported operating loss of $38 million against a gain of $21 million a year ago.
Outlook
Dominion Resources expects full-year 2017 operating earnings to be in the range of $3.40-$3.90 per share and second quarter operating earnings in a band of $0.60-$0.70 per share.
In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to Dominion.
VanEck Vectors Uranium+Nuclear Energy ETF (NLR - Free Report)
This fund seeks to provide exposure to uranium, a key component in the nuclear power industry. NLR is an expensive bet on the energy sector. This fund has AUM of $30.6 million and charges a fee of 61 basis points a year. It has 7.98% allocation to Dominion Resources (as of May 4, 2017). It closed 0.36% higher at market close on Thursday, May 04, 2017. The fund returned 4.10% in the past one year and 4.36% in the year-to-date time frame (as of May 4, 2017).
XLU is one of the most popular funds in the utility space. It primarily provides exposure to the U.S. companies involved in electricity or natural gas. The fund has AUM of $7.36 billion and is a relatively cheaper bet as it charges a fee of 14 basis points a year. It has a 7.51% allocation to Dominion Resources (as of May 4, 2017). It closed 0.39% higher at market close on Thursday, May 04, 2017. The fund returned 5.37% in the past one year and 5.93% in the year-to-date time frame (as of May 4, 2017). It currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: Are the Q4 Earnings Clouds Clearing for Utility ETFs?).
This ETF offers targeted exposure to U.S. utility companies. It has AUM of $797.4 million and charges a fee of 44 basis points a year. It has a 6.43% allocation to Dominion Resources (as of May 3, 2017). It closed 0.37% higher at market close on Thursday, May 04, 2017. The fund returned 5.21% in the past one year and 5.52% in the year-to-date time frame (as of May 4, 2017). It currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: 4 Sector ETFs to Profit from if Geopolitics Rule).
Below is a chart comparing the performance of the funds and Dominion Resources:
Source: Yahoo Finance
To Conclude
Though Dominion reported better-than-expected results, it currently has a Zacks Rank #3 (Hold). Its share performance has been moderate in the past year (up 8.46%) and year-to-date time frame (up 0.93%). Therefore, we believe the current scenario calls for being on the sidelines for now.
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ETFs in Focus After Dominion Resources Q1 Results
Shares of Dominion Resource Inc (D - Free Report) closed 0.95% higher at market close on Thursday, May 4, 2017, owing to better-than-expected results. The company reported a year-over-year increase of 15.85% in net quarterly revenues.
Q1 Performance
Dominion reported non-GAAP earnings per share of $0.97, which came ahead of the Zacks Consensus Estimate and the year-ago earnings of $0.96. Moreover, revenues of $3.384 billion beat the consensus mark of $3.365 billion. Income from operations rose to $1.125 billion from $882 million a year earlier.
Operating Earnings
Dominion Virginia Power reported operating earnings of $125 million, up from $120 million a year ago.
Dominion Energy reported operating earnings of $263 million, up from $186 million a year ago.
Dominion Generation reported operating earnings of $261 million, up from $245 million a year ago.
Corporate and other reported operating loss of $38 million against a gain of $21 million a year ago.
Outlook
Dominion Resources expects full-year 2017 operating earnings to be in the range of $3.40-$3.90 per share and second quarter operating earnings in a band of $0.60-$0.70 per share.
In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to Dominion.
VanEck Vectors Uranium+Nuclear Energy ETF (NLR - Free Report)
This fund seeks to provide exposure to uranium, a key component in the nuclear power industry. NLR is an expensive bet on the energy sector. This fund has AUM of $30.6 million and charges a fee of 61 basis points a year. It has 7.98% allocation to Dominion Resources (as of May 4, 2017). It closed 0.36% higher at market close on Thursday, May 04, 2017. The fund returned 4.10% in the past one year and 4.36% in the year-to-date time frame (as of May 4, 2017).
Utilities Select Sector SPDR Fund (XLU - Free Report)
XLU is one of the most popular funds in the utility space. It primarily provides exposure to the U.S. companies involved in electricity or natural gas. The fund has AUM of $7.36 billion and is a relatively cheaper bet as it charges a fee of 14 basis points a year. It has a 7.51% allocation to Dominion Resources (as of May 4, 2017). It closed 0.39% higher at market close on Thursday, May 04, 2017. The fund returned 5.37% in the past one year and 5.93% in the year-to-date time frame (as of May 4, 2017). It currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: Are the Q4 Earnings Clouds Clearing for Utility ETFs?).
iShares U.S. Utilities ETF (IDU - Free Report)
This ETF offers targeted exposure to U.S. utility companies. It has AUM of $797.4 million and charges a fee of 44 basis points a year. It has a 6.43% allocation to Dominion Resources (as of May 3, 2017). It closed 0.37% higher at market close on Thursday, May 04, 2017. The fund returned 5.21% in the past one year and 5.52% in the year-to-date time frame (as of May 4, 2017). It currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: 4 Sector ETFs to Profit from if Geopolitics Rule).
Below is a chart comparing the performance of the funds and Dominion Resources:
Source: Yahoo Finance
To Conclude
Though Dominion reported better-than-expected results, it currently has a Zacks Rank #3 (Hold). Its share performance has been moderate in the past year (up 8.46%) and year-to-date time frame (up 0.93%). Therefore, we believe the current scenario calls for being on the sidelines for now.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>