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Dominion (D) Beats Q3 Earnings Estimates, Narrows Guidance

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Dominion Energy Inc. (D - Free Report) reported third-quarter 2018 operating earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.11 by 3.6%. Operating earnings came in at the higher end of the guided range of 95 cents to $1.15 per share.

Also, operating earnings increased 10.6% from $1.04 reported a year ago. The year-over-year improvement was attributable to contribution from the Cove Point Liquefaction project, and the positive impact of tax reforms.

GAAP earnings were $1.30 per share compared with $1.03 in the year-ago quarter. The difference between GAAP and operating earnings was due to one-time gain on nuclear decommissioning trust funds.

Total Revenues

Dominion’s total revenues came in at $3,451 million, beating the Zacks Consensus Estimate of $3,326 million by 3.8% and also improving 8.6% from $3,179 million in the year-ago quarter.



Highlights of the Release

Total operating expenses increased 13.5% year over year to $2,301 million due to higher electric fuel prices, and increase in operating and maintenance expenses.

Interest and related charges in the reported quarter were $378 million, up 23.9% from the year-ago quarter.

In the reported quarter, Power Delivery’s electric customer base increased by 26,307 from the prior-year quarter. Electricity consumption volumes also improved 4.4% year over year to 24,000 GWh in the third quarter.

The company’s net income in the reported quarter was $758 million, up 12.8% year over year.

Segment Details

Power Delivery: Net income from this segment was $163 million, up 18.1% year over year.

Power Generation: The segment’s net income was $414 million, increasing 12.2% year over year.

Gas Infrastructure: Net income from this segment was $264 million, up 41.2% on a year-over-year basis.

Corporate and Other: The segment’s net loss was $83 million compared with $22 million in the year-ago quarter.

Financial Update

Cash and cash equivalents as of Sep 30, 2018 was $310 million compared with $120 million on Dec 31, 2017.

Long-term debt as of Sep 30, 2018 was $27.30 billion compared with $25.58 billion at the end of 2017.

Cash from operating activities in the first nine months of 2018 was $3.71 billion, up 1.1% from $3.67 billion in the corresponding period of 2017.

Outlook

For fourth-quarter 2018, Dominion expects operating earnings within 80-95 cents per share compared with 91 cents in fourth-quarter 2017. Positive drivers include commercial operation of the Cove Point Liquefaction project and the benefit of tax reform, offset by higher share count and financing costs.

For the full year, Dominion narrowed its earnings per share guidance to the range of $3.95-$4.10 from earlier expectation of $3.80-$4.25.
 
Zacks Rank


Currently, Dominion Energy has a Zacks Rank #2 (Buy).

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

Peer Releases

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

WEC Energy Group Inc. (WEC - Free Report) reported third-quarter 2018 operating earnings of 74 cents per share, beating the Zacks Consensus Estimate of 71 cents by 4.2%.

DTE Energy (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which beat the Zacks Consensus Estimate of $1.74 by 22.4%

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