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What's in the Cards for Dominion Energy (D) in Q4 Earnings?

Dominion Energy D will beat earnings estimates when it reports fourth-quarter 2017 results on Jan 29. In the third quarter, the utility company reported a positive earnings surprise of 0.97%.

Why Likely a Positive Surprise

A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Our model conclusively shows that Dominion Energy is likely to beat earnings this quarter as it possesses both the components.

Zacks ESP: The company’s Earnings ESP is +0.19%. This is because the Most Accurate estimate is at 89 cents, while the Zacks Consensus Estimate is pegged at 88 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 

Dominion Energy Inc. Price and EPS Surprise

 

Dominion Energy Inc. Price and EPS Surprise | Dominion Energy Inc. Quote

Zacks Rank: Dominion Energy’s Zacks Rank #3, when combined with a positive Earnings ESP, increases the possibility of a beat.

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


We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Consider

Dominion Energy expects earnings in the fourth quarter between 80 cents and $1 per share compared with 99 cents in the year-ago quarter. More than 90% of the company’s earnings come from regulated operations.  The company is likely to benefit from the agreement with Home Serve USA. Improvement in economic condition in Virginia is also a contributor. Dominion Energy’s expansion of electric transmission and continuous investments toward maintenance are positive factors.

However, earnings are expected to be affected by lower import revenues Cove Point import contract, planned refueling outage at Millstone Power Station, solar projects having lower investment tax credits and higher PJM electric capacity expenses.

Other Stocks to Consider

Apart from Dominion Energy, here are some companies from the industry that you may want to consider instead, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Exelon EXC has an Earnings ESP of +1.40% and a Zacks Rank #2. The company is expected to release fourth-quarter 2017 results on Feb 7.

NiSource NI has an Earnings ESP of +2.48% and a Zacks Rank #3. The company is expected to release fourth-quarter 2017 results on Feb 28.

PPL Corp PPL has an Earnings ESP of +0.35% and a Zacks Rank #3. The company is expected to release fourth-quarter 2017 results on Feb 15.

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