Dominion Resources Inc.
) is slated to release its fourth quarter 2012 financial results
before the market bell on Jan 31, 2013. In the last quarter, the
power generation, distribution and transmission company posted a
negative surprise of 5.15%. Let's see how things are shaping up
at Dominion prior to this announcement.
CLEAN EGY FUELS (CLNE): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
PG&E CORP (PCG): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
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Factors to Consider This Quarter
The expectation of normal winter will definitely benefit Dominion
and the successful outcome of the Virginia Fuel rate case will
also boost the top line. The growth projects which were completed
at Dominion Energy are likely to add to revenue.
However, we need to watch out for lower merchant generation
margins and a higher tax rate. The regular operations during the
quarter were disrupted by Hurricane Sandy, which will definitely
have an impact on the quarterly performance.
Our proven model does not conclusively show that Dominion
Resource is likely to beat earnings this quarter. That is because
a stock needs to have both a positive earnings Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 62 cents
while the Zacks Consensus Estimate is higher at 67 cents,
resulting in -7.46% ESP.
Zacks Rank #3 (Hold):
Dominion's Zacks Rank #3 when combined with negative ESP makes
surprise prediction difficult. We caution investors against the
stock going into the earnings announcement, as a negative Zacks
ESP lowers the possibility of an earnings surprise.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that they have the right combination of
elements to post an earnings beat this quarter are as follows:
) has earnings ESP of +1.72% and carries a Zacks Rank #3 (Hold).
Clean Energy Fuels Corp.
) has earnings ESP of +87.50% and carries a Zacks Rank #2 (Buy).
Teco Energy Inc.
) has earnings ESP of +14.29% and carries a Zacks Rank #3