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Dominion (D) Q3 Earnings Surpass Estimates, Revenues Miss

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Dominion Energy Inc. (D - Free Report) reported third-quarter 2020 operating earnings of $1.08 per share, which beat the Zacks Consensus Estimate by 8%. Operating earnings, however, decreased 6.1% year over year. The quarterly earnings were above the guidance range of 85 cents to $1.05 per share.

GAAP earnings were 41 cents per share compared with $1.17 in the year-ago quarter. The difference between GAAP and operating earnings was primarily attributable to the recognition of a customer credit reinvestment offset for the benefit of customers in Virginia, charges associated with long-term contracted renewable portfolio outside the company's core service areas, along with net gains on nuclear decommissioning trust funds.

Total Revenues

Dominion’s total revenues came in at $3,607 million, which lagged the Zacks Consensus Estimate of $3,642 million by 1% and declined 4.6% from $3,782 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 increased 33.7% year over year to $3,580 million due to an increase in operating and maintenance costs.

Interest and related charges for the reported quarter were $306 million, down 17.3% from the year-ago period.

Adjusted net income for the reported quarter was $916 million, down from $946 million in the year-ago quarter.

Dominion has registered 1.4% and 2.1% increase in electric customers in Virginia and South Carolina, respectively, year to date. The company has registered 2.7%, 3.8%, and 1.5% increase in gas customers in Utah, North Carolina, and Ohio, respectively, in the same period.

Segment Details

Dominion Energy Virginia: Net income from this segment was $613 million, down 2.5% year over year.

Gas Distribution: Net income from this segment was $64 million, up 48.8% on a year-over-year basis.

Dominion Energy South Carolina: Net income from this segment was $157 million, down 5.4% year over year.

Contracted Generation: The segment’s net income was $112 million, up 30.2% year over year.

Corporate and Other: The segment’s net loss was $30 million against earnings of $22 million in the year-ago quarter.

Financial Highlights

As of Sep 30, 2020, Dominion had cash and cash equivalents of $413 million, up from $135 million on Dec 31, 2019.

Total long-term debt as of Sep 30, 2020 was $33,145 million, up from $28,998 million on Dec 31, 2019.
 
For the first nine months of 2020, cash provided from operating activities was $4,810 million, up 29.7% from $3,709 million in the comparable year-ago period.

Guidance

For fourth-quarter 2020, Dominion expects operating earnings within 73-87 cents per share. The company reported earnings of $1.18 per share in the year-ago period. The midpoint of the above guided range is 80 cents, lower than the current Zacks Consensus Estimate for the period of 85 cents.

Dominion 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 $3.64.

It expects 2021 earnings per share in the range of $3.85-$3.90.

Zacks Rank

Currently, Dominion 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. (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

Exelon Corporation’s (EXC - Free Report) third-quarter 2020 operating earnings of $1.04 per share surpassed the Zacks Consensus Estimate of 87 cents by 19.5%.

FirstEnergy Corporation (FE - Free Report) came up with third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%.

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