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Q3 Earnings Preview for Dominion Energy (NYSE:D)

in EARNINGS/INVESTING IDEAS by

Dominion Energy, Inc. (NYSE:D) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of $0.99/share on revenue of $3.836 billion. The consensus earnings per share (EPS) of $0.99/share is based on a poll of 14 analysts and represents a decline in eps of −16.4% over the same quarter last year, when the company reported earnings of $1.18/share.

The revenue forecast of $3.836 billion based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −10.1%. Last year the company reported $4.269 billion in revenue for the quarter.

Expected to report EPS contraction of −16.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $3,836.33 $4,269.00 −10.1%
EPS $0.99 $1.18 −16.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarter.

What are your expectations from Dominion Energy, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.77 $0.82 6.7% Beat
Q1, 2020 $1.10 $1.09 −0.6% Missed
Q4, 2019 $1.15 $1.18 2.4% Beat
Q3, 2019 $1.14 $1.18 3.4% Beat
Q2, 2019 $0.77 $0.77 0% Met
Q1, 2019 $1.12 $1.10 −1.8% Missed
Q4, 2018 $0.91 $0.89 −2.4% Missed
Q3, 2018 $1.13 $1.15 1.8% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 31, 2020 $104.16 $103.14 −0.98% Decline
July 31, 2020 $97.64 $99.33 1.73% Increase
July 31, 2020 $108.57 $109.79 1.12% Increase
July 31, 2020 $107.21 $107.54 0.31% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.66, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.66 implies a 0.4% chance of earnings manipulation.

Fundamentals And Technical Analysis

Dominion Energy, Inc. is currently trading at $80.45/share, down −2.4% for the day. The company is trading at approximately 88.5% of its 52-week high of $90.89/share. The company’s stock price is down −0.7% since the last earnings report and up 0.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 58.35 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:D Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 135.74 and a forward P/E multiple of 23.72.

Dominion Energy, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.54. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $80.45
P/E Ratio 135.7x
P/E Ratio (Fwd) 23.7x
PEG Ratio −2.6
Total Debt / Total Capital 35.5%
Levered Free Cash Flow -$132 million
EV / EBITDA 12.4x

Finbox

Dominion Energy, Inc. is a large-cap stock with a market capitalization of $69.213 billion and a total enterprise value of $113.5 billion. The company operates in the Utilities sector and the Multi-Utilities industry.

Dominion Energy, Inc. produces and transports energy. The company’s Dominion Energy Virginia segment engages in the regulated electric generation, transmission, and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. Its Gas Transmission & Storage segment operates interstate natural gas transmission pipelines and underground storage systems, as well as engages in nonregulated retail natural gas marketing, and development of renewable natural gas and LNG infrastructure. The company’s Gas Distribution segment engages in the regulated natural gas gathering, transportation, distribution, and sales activities. This segment serves residential, commercial, and industrial customers. Its Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina. The company’s Contracted Generation segment is involved in the energy marketing and price risk activities. As of December 31, 2019, the company’s portfolio of assets included approximately 30,700 megawatts of electric generating capacity; 10,400 miles of electric transmission lines; 85,000 miles of electric distribution lines; 14,600 miles of natural gas transmission, gathering, and storage pipelines; and 103,400 miles of gas distribution pipelines. It serves approximately 7 million utility and retail energy customers; and operates underground natural gas storage systems with approximately 1 trillion cubic feet of storage capacity. The company sells electricity at wholesale prices to rural electric cooperatives and municipalities, as well as into wholesale electricity markets. The company was formerly known as Dominion Resources, Inc. and changed its name to Dominion Energy, Inc. in May 2017. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.

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