Dominion Energy (D) to Post Q3 Earnings: What's in the Cards?
Dominion Energy Inc. D is scheduled to release third-quarter 2023 earnings on Nov 3, before market open. In the last reported quarter, the utility delivered an earnings surprise of 10.42%.
Let’s see how things have shaped up before the upcoming earnings announcement.
Factors to Note
Dominion Energy’s third-quarter earnings are likely to have benefited from regulated investments, higher sales volume and efficient cost management. A few transmission projects were completed ahead of schedule, which is expected to have a positive impact on earnings. Economic development, population growth in South Carolina and an increase in customers in its gas distribution business will boost earnings.
However, higher DD&A expenses, the planned outage of Millstone Power Station, an increase in interest expenses and the sale of interest in Cove Point are all likely to have a negative impact on third-quarter earnings. In addition, the rate reduction at Dominion Energy Virginia from the beginning of the third quarter is going to impact earnings adversely.
Expectations
Dominion Energy expects third-quarter earnings of 72-87 cents per share, whereas it reported $1.11 in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at 78 cents, indicating a decline of 29.73% from the year-ago reported figure.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Dominion Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
Dominion Energy Inc. Price and EPS Surprise
Dominion Energy Inc. price-eps-surprise | Dominion Energy Inc. Quote
Earnings ESP: The company’s Earnings ESP is -2.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Investors can consider the following players from the same industry that have the right combination of elements to post an earnings beat for the to-be-reported quarter.
Consolidated Edison ED is likely to report an earnings beat when it announces third-quarter results on Nov 2, after market close. It has an Earnings ESP of +3.93% and a Zacks Rank #2 at present.
ED’s long-term (three- to five-year) earnings growth rate is 2%. The Zacks Consensus Estimate for 2023 earnings is pegged at $4.91 per share,implying a year-over-year improvement of 7.91%.
TransAlta TAC is likely to come up with an earnings beat when it reports third-quarter results on Nov 7, before market open. It currently has an Earnings ESP of +15.26% and a Zacks Rank #3.
The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 88.2%. The consensus mark for 2023 earnings is pinned at $1.44 per share, implying a year-over-year improvement of 1,900%.
Ameren Corporation AEE is expected to come up with an earnings beat when it reports third-quarter results on Nov 8, after market close. It has an Earnings ESP of +0.22% and a Zacks Rank #3 at present.
AEE’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for earnings is pegged at $1.8 per share, indicating a year-over-year increase of 3.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ameren Corporation (AEE) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
