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Dominion's (D) Q2 Earnings Beat Estimates, Revenues Miss

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Dominion Energy Inc. (D - Free Report) reported second-quarter 2019 operating earnings of 77 cents per share, beating the Zacks Consensus Estimate of 75 cents by 2.6%. Operating earnings came within the company’s guided range of 70-80 cents per share. Strong contribution from Southeast Energy and Power Delivery businesses, coupled with favorable weather positively impacted second-quarter earnings.

GAAP earnings were 5 cents per share compared with 69 cents in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges related to SCANA merger integration and a voluntary retirement program.

Total Revenues

Dominion’s total revenues came in at $3,970 million, lagging the Zacks Consensus Estimate of $4,085 million by 2.8% but improving 28.9% from $3,080 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 49% year over year to $3,509 million due to higher electric fuel and purchase gas prices, and an increase in operating and maintenance costs.

Interest and related charges in the reported quarter were $452 million, up 25.2% from the year-ago period.

In the reported quarter, the electric delivery customer base increased by 759,764 from the prior-year level. Electricity delivery volumes also improved 27.03% year over year to 26,409 gigawatt hours in the second quarter.

Segment Details

Power Delivery: Net income from this segment was $156 million, up 7.6% year over year.

Power Generation: The segment’s net income was $250 million, decreasing 9.4% year over year.

Gas Infrastructure: Net income from this segment was $247 million, down 0.8% on a year-over-year basis.

Southeast Energy: Net income from this segment was $82 million.

Corporate and Other: The segment’s net loss was $116 million compared with a loss of $110 million in the year-ago quarter.

Financial Update                                                                                                                        
Cash, restricted cash and cash equivalents as of Jun 30, 2019 were $382 million compared with $268 million on Dec 31, 2018.

Long-term debt as of Jun 30, 2019 was $31.85 billion compared with $26.32 billion at the end of 2018.

Cash from operating activities in the first half of 2019 was $2.31 billion compared with $2.42 billion in the same period last year.

Guidance

For third-quarter 2019, Dominion expects operating earnings within $1.00-$1.20 per share. The company reported earnings of $1.15 per share in the year-ago period. The midpoint of the above guided range is $1.10, below the current Zacks Consensus Estimate for the period of $1.23. The company expects 2018 asset sales, share dilution and return to normal weather to significantly affect earnings during the third quarter.

For 2019, Dominion expects earnings per share in the range of $4.05-$4.40. The company recorded earnings of $4.05 per share in 2018. The midpoint of the above guided range is $4.225, higher than the current Zacks Consensus Estimate for the period of $4.15.

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 second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%.

FirstEnergy Corporation (FE - Free Report) came up with second-quarter 2019 operating earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 1.7%.

American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2019 adjusted earnings per share of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.

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