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Why Is Dominion Energy (D) Down 2% Since Last Earnings Report?

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It has been about a month since the last earnings report for Dominion Energy (D - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Dominion Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Dominion Energy Q1 Earnings Beat Estimates, Sales Lag

Dominion Energy Inc.  reported first-quarter 2020 operating earnings of $1.09 per share, which beat the Zacks Consensus Estimate by a penny. Operating earnings also improved 18.5% year over year. The quarterly earnings were within the guided range of $1.00-$1.15 per share.

GAAP earnings were $1.23 per share against a loss of 34 cents per share in the year-ago quarter.

Total Revenues

Dominion Energy’s total revenues came in at $3,870 million, which lagged the Zacks Consensus Estimate of $4,191 million by 7.6% and declined 13.9% from $4,496 million in the year-ago quarter.

Highlights of the Release

Total operating expenses decreased 16.2% year over year to $2,992 million due to a decline in operating and maintenance costs along with drop in electric fuel and energy-related purchases.

Interest and related charges for the reported quarter were $53 million, down 87.7% from the year-ago period.

Segment Details

Dominion Energy Virginia: Net income from this segment was $434 million, up 1.2% year over year.

Gas Distribution: Net income from this segment was $251 million, up 12.1% on a year-over-year basis.

Dominion Energy South Carolina: Net income from this segment was $102 million, up 8.5% year over year.

Contracted Assets: The segment’s net income was $150 million, up 35.1% year over year.

Corporate and Other: The segment’s net loss was $44 million compared with a loss of $70 million in the year-ago quarter.

Financial Highlights

As of Dec 31, 2021, Dominion Energy had $477 million in cash and cash equivalents compared with $172 million in the corresponding period of 2020.

Total long-term debt as of Mar 31, 2020 was $33,248 million, up from $33,957 million as of Dec 31, 2020.

For first-quarter 2021, cash provided from operating activities was $1,452 million, down 11.1% from $1,633 million in the year-ago period.

Guidance

The company initiated its second-quarter 2021 operating earnings guidance in the range of 70-80 cents per share. The company reported earnings of 82 cents per share in the year-ago period. The midpoint of the above guided range is 75 cents, lower than the current Zacks Consensus Estimate for the period of 77 cents per share.

It reaffirmed 2021 earnings per share in the range of $3.70-$4.00.

Growth capital expenditure for the 2021-2025 period is expected to be $32 billion and nearly 80% of the planned expenditure will be directed for lowering emissions.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Dominion Energy has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Dominion Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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