Dominion Resources Inc.
) reported second quarter 2014 operating earnings of 62 cents per
share, a penny higher than the Zacks Consensus Estimate of 61
Earnings were on par with the year-ago figure and within the
guidance range of 55 cents to 65 cents for the quarter.
Dominion Resources, Inc - Earnings Surprise |
GAAP earnings were 27 cents per share versus 35 cents per share
in the year-ago quarter.
Dominion's operating revenue of $2.81 billion in the second quarter
decreased nearly 5% year over year.
The decline in the top line was primarily due to lower contribution
, marginally offset by higher contribution from
Dominion Virginia Power
Total revenue was marginally higher than the Zacks Consensus
Estimate of $2.8 billion by 0.2%.
Dominion Virginia Power recorded revenues of $450 million in the
second quarter of 2014, up 3.5% year over year.
Dominion Energy reported revenues of $681 million, up 8.3% year
Dominion Generation's revenues decreased nearly 10.4% year over
year to $1.7 billion.
Total operating expenses in the second quarter decreased 6.5% year
over year to $2.26 billion. The decline in total expenses was
primarily due to a 25.6% year-over-year drop in energy fuel and
other energy related purchases. This was marginally offset by a
14.5% increase in purchased gas expenses.
Interest and related charges in the reported quarter were $226
million versus $201 million in the year-ago quarter.
Dominion exited the quarter with cash and cash equivalents of $419
million, up from $316 million as of Dec 31 2013.
Long-term debt at quarter end increased to $18 billion from $16.88
billion at prior-year end.
Cash from operating activities in the first half of 2014 decreased
to $1.44 billion from $1.79 billion in the comparable year-ago
Dominion expects to deliver third quarter operating earnings in a
range of 90 cents to $1.05 per share.
The third quarter results are likely to benefit from more normal
temperatures in its service territories and higher
weather-normalized kilowatt sales and revenues related to electric
transmission growth projects. However, higher interest and
operating expenses are likely to offset these positives to some
Dominion Resources reaffirmed its 2014 operating earnings guidance
of $3.35 to $3.65 per share.
Other Company Releases
American Electric Power Co., Inc.
) earnings per share of 80 cents in the second quarter 2014
surpassed the Zacks Consensus Estimate of 75 cents by nearly 6.7%.
) reported second-quarter earnings of $1.11 per share, lagging the
Zacks Consensus Estimate by 2.6%
DTE Energy Company
) reported second-quarter 2014 operating earnings per share of 73
cents, lagging the Zacks Consensus Estimate of 77 cents by 5.2%.
Dominion Resources' earnings were marginally ahead of our
expectation in the reported quarter as lower costs boosted margins.
The company also succeeded in expanding its electric delivery
customer base by 0.9% and most importantly its electric delivery
volumes by 0.5% from the comparable year-ago period. Although
marginal, this is an outcome of the company's infrastructure growth
Dominion continues to expand its green generation portfolio. In the
reported quarter, the company announced that it has acquired two
solar projects in Tennessee and has entered into an agreement to
acquire a seventh in California, taking its total solar projects in
service or development to 232 megawatts.
Dominion Resources holds a Zacks Rank #3 (Hold).
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