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What's in Store for Dominion Energy (D) in Q1 Earnings?

Zacks Equity Research

Dominion Energy D is scheduled to report first-quarter 2019 results on May 3, before the opening bell. The company came up with a negative earnings surprise of 2.2% in the last reported quarter.

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

Dominion’s first-quarter earnings are expected to gain from the Cove Point Liquefaction project and the addition of Southeast Energy Group. However, higher share count, loss of earnings due to sale of assets in the previous quarter and farmout timings are likely to offset these positives to some extent.

Dominion Energy expects first-quarter earnings in the range of $1.05-$1.2 per share compared with $1.14 reported in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $1.12, down 1.8% from the year-ago reported figure.

Dominion Energy Inc. Price and EPS Surprise

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

Here is What Our Quantitative Model Predicts

Our proven model shows that Dominion 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 -1.05%. This is because the Most Accurate Estimate of $1.10 is pegged lower than the Zacks Consensus Estimate of $1.12.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Dominion carries a Zacks Rank #3, which when combined with a negative Earnings ESP, lowers the possibility of an earnings beat.
 
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 revision.

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 slated to release first-quarter results on May 1. It has an Earnings ESP of +3.99% 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 first-quarter results on May 1. It has an Earnings ESP of +0.10% and a Zacks Rank of 2.

Exelon Corporation EXC is scheduled to release first-quarter results on May 2. It has an Earnings ESP of +0.46% and a Zacks Rank of 3.

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Exelon Corporation (EXC) : Free Stock Analysis Report
 
Dominion Energy Inc. (D) : Free Stock Analysis Report
 
Entergy Corporation (ETR) : Free Stock Analysis Report
 
Southern Company (The) (SO) : Free Stock Analysis Report
 
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