Dominion Energy, Inc. (D), headquartered in Richmond, Virginia, produces and distributes energy. Valued at $43.39 billion by market cap, the company specializes in regulated and non-regulated electricity distribution, generation, and transmission. It provides homes and businesses with electricity or natural gas to more than 4.5 million customers in 13 states. The utility major is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect D to report a profit of $0.59 per share on a diluted basis, up 11.3% from $0.53 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions.
For fiscal 2024, analysts expect D to report EPS of $2.75, up 38.2% from $1.99 in fiscal 2023.
D stock has underperformed the S&P 500’s ($SPX) 16.7% gains on a YTD basis, with shares up 10.2% during this period. Similarly, it underperformed the S&P 500 Utilities Sector SPDR’s (XLU) 11.6% gains over the same time frame.
D’s recent performance can be attributed to the company’s optimistic outlook on electricity demand. D expects economic growth, electrification, and accelerating data center expansion to drive long-term growth. The data center industry has grown steadily in North Virginia in recent years, and the company has connected 94 data centers with over four GW of capacity in the past five years and expects to connect an additional 15 data centers this year. The company revealed that it was receiving individual requests to fulfill the demand for 60 MW to 90 MW or greater.
On May 2, D reported its Q1 results. Its adjusted EPS declined 6.8% year-over-year to $0.55, beating the consensus estimates of $0.51. The company’s revenue stood at $3.63 billion, and it expects its full-year EPS to be between $2.62 and $2.87. It expects EPS to be between $3.25 and $3.54 in fiscal 2025. D’s cash and cash equivalents at the end of Q1 increased to $265 million from $184 million as of Dec. 31, 2023. D shares closed up marginally on the day the results were released.
Analysts’ consensus opinion on D stock is bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, three advise a “Strong Buy” rating, and 11 recommend a “Hold.” The average analyst price target for D is $51.67, indicating a marginal potential downside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
