Dominion Resources, Inc.
) reported fourth-quarter 2013 operating earnings of 80 cents per
share, missing the Zacks Consensus Estimate by 9.1%. Quarterly
earnings were 15.9% higher than the year-ago figure primarily on
the back of lower taxes and a decrease in other operations and
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On a GAAP basis, the company's earnings per share were 74 cents
compared with a loss of $1.15 a year ago.
Dominion's yearly operating earnings of $3.25 per share lagged
the Zacks Consensus Estimate by 2.7%. On a year-over-year basis,
earnings increased 6.6% owing to a decrease in operations and
maintenance expenses, lower taxes and benefit from an additional
asset contribution to Blue Racer. These positives were partially
offset by mild weather.
Reported annual GAAP earnings was $2.93 per share, higher than
the year-ago figure of 53 cents per share. The variance between
GAAP and operating earnings was due to the combined effect of
several charges associated with the sale of Brayton Point and
Kincaid power stations and the repositioning of the company's
Producer Services businesses, impact of Virginia Power biennial
review order, operation and maintenance expenses reduction
initiative, and gains related to the nuclear decommissioning
trust funds and asset retirement obligations ("ARO") revisions.
In fourth-quarter 2013, Dominion's operating revenues of $3.2
billion surpassed the Zacks Consensus Estimate by 4.8%. Reported
revenues surged 6% year over year primarily due to higher
revenues from the company's
Dominion Virginia Power
segments. This was partially offset by a drop in sales from
Corporate and Other
For 2013, the company's total revenues of $13.1 billion fell
short of the Zacks Consensus Estimate by 0.6%. Annual revenues
however surged 2.7% year over year, mainly due to increased rate
adjustment clause revenues and a rise in revenues associated with
the company's gas transmission growth projects.
In the quarter under review, total operating expenses decreased
4.7% year over year to $2.4 billion, mainly due to lower costs
for purchased gas, and other operations and maintenance expenses.
Dominion's quarterly operating margin improved to 26.7% from the
year-ago figure of 25.8%.
Interest and related charges in the reported quarter was $0.2
billion, up 16.5% from the prior-year level.
Dominion's cash balance as of Dec 31, 2013 was $0.3 billion
versus $0.2 billion a year ago.
As of Dec 31, 2013, long-term debt was $19.3 billion versus $16.9
billion as of Dec 31, 2012.
Net cash provided by operating activities during 2013 was $3.4
billion, lower than $4.1 billion in the year-ago comparable
Dominion expects to deliver first-quarter 2014 operating earnings
in the band of 85 cents - $1.00 per share.
For 2014, the company provided operating earnings guidance in the
range of $3.35 - $3.65 per share.
The company considered several factors including higher revenues
from its capital projects subject to rider treatment, a return to
normal weather, expected growth at its electricity service
territory and a lower effective income tax rate while reporting
estimates. The company expects an increase in operating and
maintenance expenses, higher interest expenses, and higher
depreciation to negatively impact the aforesaid positives.
American Electric Power Company Inc.
) reported fourth-quarter 2013 operating earnings of 60 cents per
share, beating the Zacks Consensus Estimate by 7.1%.
Dominion Resources currently has a Zacks Rank #3 (Hold). However,
some better-ranked stocks in the same sector include
Wisconsin Energy Corp.
The AES Corp.
), each with a Zacks Rank #2 (Buy).