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Dominion's (D) Q1 Earnings Lag Estimates, Revenues Up Y/Y

Jewel Saha

Dominion Energy Inc. D reported first-quarter 2019 operating earnings of $1.10 per share, lagging the Zacks Consensus Estimate of $1.12 by 1.8%. However, operating earnings came within the company’s guided range of $1.05-$1.25 per share.

The reported figure was lower than the year-ago quarter by 3.5%. The year-over-year decrease was due to unusually mild weather in Virginia and South Carolina, which lowered earnings by six cents in the reported quarter.

GAAP earnings were 86 cents per share compared with 77 cents in the year-ago quarter.

Total Revenues

Dominion’s total revenues came in at $3,858 million, lagging the Zacks Consensus Estimate of $4,614 million by 16.4% but improving 11.3% from $3,466 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. Quote

Highlights of the Release

Total operating expenses increased 67.5% year over year to $4,340 million due to higher electric fuel prices, and an increase in operating and maintenance costs.

Interest and related charges in the reported quarter were $469 million, up 49.4% from the year-ago period.

In the reported quarter, electric delivery customer base increased by 761,249 from the prior-year level. Electricity consumption volumes also improved 21.6% year over year to 26,958 gigawatt hour in the first quarter.

Segment Details

Power Delivery: Net income from this segment was $155 million, down 0.6% year over year.

Power Generation: The segment’s net income was $308 million, decreasing 11.5% year over year.

Gas Infrastructure: Net income from this segment was $359 million, up 9.8% on a year-over-year basis.

Southeast Energy: Net income from this segment was $132 million.

Corporate and Other: The segment’s net loss was $81 million compared with a loss of $90 million in the year-ago quarter.

Financial Update

Cash, restricted cash and cash equivalents as of Mar 31, 2019 were $422 million compared with $268 million on Dec 31, 2018.

Long-term debt as of Mar 31, 2019 was $32.04 billion compared with $26.32 billion at the end of 2018.

Cash from operating activities in first-quarter 2019 was $1.17 billion compared with $1.23 billion in the same period last year.

Guidance

For second-quarter 2019, Dominion expects operating earnings within 70-80 per share compared with 86 cents in the year-ago period. The midpoint of the guided range is 75 cents, below the current Zacks Consensus Estimate for the period of 90 cents. The company expects Millstone refueling outage timing, share dilution and return to normal weather to significantly impact earnings during the second quarter.

For 2019, Dominion expects earnings per share in the range of $4.05-$4.40 compared with $4.05 recorded in 2018. The midpoint of the guided range is $4.225, below the current Zacks Consensus Estimate for the period of $4.18. Positive drivers for 2019 include commercial operation of the Cove Point Liquefaction project, the addition of the Southeast Energy Group operating segment and growth from regulated investment.  

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 reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corp. FE reported first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

American Electric Power Co., Inc. AEP reported first-quarter 2019 adjusted earnings per share  of $1.19, surpassing the Zacks Consensus Estimate of $1.10 by 8.2%.

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