Dominion Resources (D - Free Report) is scheduled to report second-quarter 2017 results before the market opens on Aug 2. Last quarter, the company reported a positive earnings surprise of 1.04%. Let’s see how things are shaping up for the second quarter.
Factors to Consider
In second-quarter 2017, Dominion expects to generate operating earnings of 60–70 cents per share. In the year-ago quarter, the company reported earnings of 71 cents. Unlike in the first quarter, a return to normal weather will help the company’s earnings in the to-be-reported quarter.
Dominion Resources’ earnings in the second quarter are expected to be adversely impacted by lower Millstone margins and drop in solar investment tax credits.
Our proven model does not conclusively show that Dominion Resources is likely to beat earnings 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. Unfortunately, that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Dominion Resources’ Earnings ESP is +4.55%, as the Most Accurate estimate is pegged at 69 cents, higher than the Zacks Consensus Estimate of 66 cents.
Zacks Rank: The company carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Dominion Resources does not have the correct mix to come out with an earnings surprise this season. However, the following companies from the Zacks categorized Utility sector have the right combination of elements to post an earnings beat this quarter.
NiSource Inc. (NI - Free Report) has an Earnings ESP of +10.0% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALLETE Inc. (ALE - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 2.
IDAC ORP Inc. (IDA - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings Aug 3.
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