Richmond, Virginia-based Dominion Energy, Inc. (D) engages in regulated and non-regulated electricity distribution, generation, and transmission businesses. With a market cap of $44.9 billion, Dominion Energy operates through Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy segments.
The utility giant is set to release its Q4 results before the market opens on Wednesday, Feb. 12. Ahead of the event, analysts expect Dominion to report a non-GAAP profit of $0.59 per share, up a staggering 103.5% from $0.29 per share reported in the year-ago quarter. While the company has missed Wall Street’s earnings projections twice over the past four quarters, it has surpassed the estimates on two other occasions. Its adjusted EPS for the last reported quarter surged 27.3% year-over-year to $0.98, exceeding the consensus estimates by 6.5%.
For the full fiscal 2024, analysts expect Dominion to report an adjusted EPS of $2.76, up 38.7% from $1.99 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 22.5% year-over-year to $3.38.
Shares of Dominion Energy have gained 21.1% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 25.3% surge and the Utilities Select Sector SPDR Fund’s (XLU) 32.6% returns during the same time frame.
Dominion Energy’s stock prices observed a marginal dip after the release of its mixed Q3 results on Nov. 1. While the company’s operating revenues increased 3.4% year-over-year to $3.9 billion, it missed Wall Street’s topline expectations by a notable 3.6%. However, the company observed a slight decline in operating expenses which led to a significant 18.4% surge in income from operations compared to the year-ago quarter, reaching $1.2 billion.
On a more positive note, Dominion Energy reaffirmed its full-year non-GAAP EPS guidance of $2.68 to $2.83 for fiscal 2024 and gave a solid EPS guidance of $3.25 to $3.54 for fiscal 2025 which mitigated the drop in stock prices.
However, analysts remain cautious about the stock’s prospects, Dominion has a consensus “Hold” rating overall. Out of the 18 analysts covering the stock, three suggest “Strong Buy” and 15 recommend a “Hold” rating. Its mean price target of $58.87 represents a 10.1% premium to current price levels.
