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Dominion Energy (D) Q2 Earnings Beat Estimates, Sales Miss

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Dominion Energy Inc. (D - Free Report) reported second-quarter 2020 operating earnings of 82 cents per share, which beat the Zacks Consensus Estimate by a penny. Operating earnings were 6.5% higher than the year-ago figure of 77 cents. The quarterly earnings were near the upper end of the guidance range of 75-85 cents per share.

GAAP loss was $1.41 per share versus earnings of 5 cents in the year-ago quarter. The difference between GAAP and operating earnings was primarily attributable to impairment-related charges associated with the Atlantic Coast Pipeline and Supply Header projects, along with net gains on its nuclear decommissioning trust funds.

Total Revenues

Dominion Energy’s total revenues came in at $3,585 million, which lagged the Zacks Consensus Estimate of $3,995 million by 10.3% and declined 9.7% from $3,970 million in the year-ago quarter.

Dominion Energy Inc. Price, Consensus and EPS Surprise

Dominion Energy Inc. Price, Consensus and EPS Surprise

Dominion Energy Inc. price-consensus-eps-surprise-chart | Dominion Energy Inc. Quote

Highlights of the Release

Total operating expenses decreased 13.2% year over year to $3,045 million due to lower electric fuel and energy-related purchases, as well as decrease in operating and maintenance costs.

Interest and related charges for the reported quarter were $449 million, down 0.7% from the year-ago period.

Segment Details

Dominion Energy Virginia: Net income from this segment was $437 million, up 11.2% year over year.

Gas Transmission & Storage: The segment’s net income was $184 million, increasing 4% year over year.

Gas Distribution: Net income from this segment was $87 million, down 31.2% on a year-over-year basis.

Dominion Energy South Carolina: Net income from this segment was $75 million, down 21% year over year.

Contracted Generation: The segment’s net income was $21 million, up 61.5% year over year.

Corporate and Other: The segment’s net loss was $98 million, narrower than a loss of $125 million in the year-ago quarter.

Financial Highlights

As of Jun 30, 2020, Dominion Energy had cash and cash equivalents of $675 million, up from $166 million on Dec 31, 2019.

Total long-term debt as of Jun 30, 2020 was $33,848 million, up from $30,313 million on Dec 31, 2019.
    
In first-half 2020, cash provided from operating activities was $3,136 million, up 35.6% from $2,313 million in the comparable year-ago period.

Guidance

For third-quarter 2020, Dominion Energy expects operating earnings within 85 cents to $1.05 per share. The company reported earnings of $1.18 per share in the year-ago period. The midpoint of the above guided range is 95 cents, lower than the current Zacks Consensus Estimate for the period of $1.01.

Dominion Energy reaffirmed its 2020 earnings guidance in the range of $3.37-$3.63 per share. The company recorded earnings of $4.24 per share in 2019. The current Zacks Consensus Estimate for 2020 is pegged at $3.63.

Zacks Rank

Currently, Dominion Energy has a Zacks Rank #5 (Strong Sell).

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

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, which surpassed the Zacks Consensus Estimate of $2.50 by 4.4%.

Edison International (EIX - Free Report) reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%.

DTE Energy Company (DTE - Free Report) reported second-quarter 2020 operating earnings per share of $1.53, which beat the Zacks Consensus Estimate of $1.31 by 16.8%.

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