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Dominion Energy (D) to Report Q2 Earnings: What's in Store?

Zacks Equity Research

Dominion Energy Inc. D is scheduled to report second-quarter 2019 results on Jul 31, before the opening bell. The company came up with a negative earnings surprise of 1.79% in the last reported quarter.

Let’s see how things are shaping up before the next earnings announcement.
Factors to Consider

Dominion Energy’s second-quarter earnings are expected to gain from regulated investment and the addition of Southeast Energy Group. However, higher share count, Millstone refueling outage, sale of assets and farmout timings are likely to offset these positives to some extent.

The company is expected to benefit from strong customer growth in its service territories. Secured earnings from more than 95% regulated assets will drive Dominion Energy’s bottom-line growth in the second quarter.

It expects second-quarter earnings in the range of 70-80 cents per share compared with 86 cents reported in the year-ago period. The Zacks Consensus Estimate for the same is pegged at 75 cents, down 12.8% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model shows that Dominion Energy is unlikely to beat estimates in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is 0.00%.

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. price-eps-surprise | Dominion Energy Inc. Quote

Zacks Rank: Currently, Dominion Energy carries a Zacks Rank #3, which when combined with a 0.00% Earnings ESP, lowers the possibility of an earnings beat in the to-be-reported quarter.
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.

Stocks to Consider

Investors may consider the following companies from the same industry that have the right combination of elements to beat estimates in the quarter to be reported:

Entergy Corporation ETR is expected to release second-quarter results on Jul 31. It has an Earnings ESP of +1.4% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southern Company SO is set to release second-quarter results on Jul 31. It has an Earnings ESP of +0.46% and a Zacks Rank of 3.

Black Hills Corporation BKH is scheduled to release second-quarter results on Aug 5. It has an Earnings ESP of +0.75% and a Zacks Rank of 3.

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Dominion Energy Inc. (D) : Free Stock Analysis Report
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