Dominion Resources Inc.
) is slated to release its third-quarter 2012 earnings results
before the market opens on October 25, 2012.
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Second Quarter Performance
Dominion Resources reported second quarter 2012 operating
earnings of 59 cents per share, in line with the Zacks Consensus
Estimate as well as the year-ago earnings. Dominion's earnings
were at the mid-point of the guidance of 55-65 cents.
Operating earnings for the quarter were $337 million, inching
down from $338 million in the year-ago quarter.
Lower operations and maintenance expenses and higher
contributions from unregulated retail energy marketing operations
were offset by milder-than-normal weather in the regulated
electric service territory and lower merchant generation margins.
Dominion's operating revenue of $3.0 billion in the second
quarter declined 8.8% from the year-ago quarter. Lower revenue
across all segments induced the decline. Revenue also fell short
of the Zacks Consensus Estimate of $3.25 billion.
Total operating expenses in the second quarter reached $2.29
billion, down 10.7% year over year. The decline was due to lower
electric fuel and other energy related purchases, decline in
purchased electric capacity and purchased gas and lower
operations and maintenance expenses.
A Sneak Peek at 2012
Dominion expects to deliver third quarter operating earnings in a
range of 90 cents to $1.00 per share. The company's guidance is
based on an expected higher rate of adjustment clause earnings,
growth in electric service territory and lower operations and
maintenance expenses. However, these positives would be moderated
by normal weather and lower merchant generation margins.
Dominion affirmed full year 2012 operating earnings in a band of
$3.10-$3.35 per share.
The Zacks Consensus Estimate for the third quarter 2012 is 97
cents per share, up 2.5% from 95 cents reported in the year-ago
quarter. The current Zacks Consensus Estimate ranges between 95
cents per share and $1.03 per share.
The full year 2012 Zacks Consensus Estimate is $3.16, up 3.59%
year over year. The current Zacks Consensus Estimate ranges
between $3.10 per share and $3.30 per share.
Estimate Revisions Trend
The past 30 days have seen one of eight estimates declining for
the third quarter, while none moved in the opposite direction.
There were no changes in the quarterly estimates in the last 7
For full year 2012, of the 16 available estimates, there has been
1 revision in the negative direction, in the last 30 days. There
were no changes in the estimates in the prior 7 days.
The Zacks Consensus Estimate for the third quarter inched down by
a penny in the last 30 days, while it remained unchanged for the
full year. In the past 7 days, the consensus earnings estimates
remained static both for the third quarter and full year 2012.
With respect to earnings surprise, the company's performance was
mixed in the last four quarters. The results of the company
surpassed our expectation in one of the last four quarters, while
earnings fell short of expectation in two other quarters and
matched our expectation in one quarter.
The earnings surprise in the last four quarters ranged from
(1.16%) to 1.06%. The average surprise over the last four
quarters remained a negative 3.16%.
Dominion Resources retains a Zacks #3 Rank which translates into
a short-term Hold rating. The company primarily competes with
American Electric Power Co.
Richmond, Virginia based Dominion Resources Inc. is founded in
1909. The company together with its subsidiaries, engages in
producing and transporting energy in the U.S. With approximately
15,800 employees, the company's market capitalization is $30.72