Markets
D

Can Dominion Energy (D) Deliver a Beat Again in Q3 Earnings?

Dominion EnergyD is expected to beat earnings estimates when it reports third-quarter results on Nov 1, before the opening bell. The utility company surpassed estimates in the last four quarters, delivering an average positive earnings surprise of 6.33%.

Here is What Our Quantitative Model Predicts:

A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. Our model shows that Dominion Energy is likely to beat on earnings in the soon-to-be-reported quarter as it possesses both the components.

Earnings ESP: The company's Earnings ESP is +1.39%. This is because the Most Accurate Estimate of $1.13 is pegged higher than the Zacks Consensus Estimate of $1.11.

Dominion Energy Inc. Price and EPS Surprise

Dominion Energy Inc. Price and EPS Surprise | Dominion Energy Inc. Quote

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank : Currently, Dominion Energy carries a Zacks Rank #2, which when combined with a positive Earnings ESP, increases the possibility of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.

Factors to Consider

Dominion Energy expects its third-quarter earnings in the range of 95 cents to $1.15 per share compared with $1.04 in the year-ago quarter. The company will benefit from an increasing electricity demand from data center campuses and residential customers.

Its third-quarter 2018 earnings are expected to gain from the Cove Point Liquefaction project and benefits from tax reforms. However, higher share count and lower solar tax credits are likely to offset these positives to some extent. In addition, Hurricane Florence hit its service area, which could have an adverse impact on earnings.

During the quarter, the company received a few necessary approvals to complete its merger with SCANA Corporation.

Other Stocks to Consider

In addition to Dominion Energy, investors may also consider the following companies from the same industry that also have the right combination of elements to beat estimates in the quarter to be reported:

Eversource Energy ES has an Earnings ESP of +2.55% and a Zacks Rank #2. The company is expected to report third-quarter 2018 earnings on Nov 1.

Allete Inc. ALE has an Earnings ESP of +3.89% and carries a Zacks Rank #2. The company is slated to report third-quarter 2018 results on Nov 1.

Portland General Electric Company POR has an Earnings ESP of +4.31% and a Zacks Rank #1. The company is expected to report third-quarter 2018 numbers on Oct 26.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Allete, Inc. (ALE): Free Stock Analysis Report

Portland General Electric Company (POR): Free Stock Analysis Report

Dominion Energy Inc. (D): Free Stock Analysis Report

Eversource Energy (ES): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

D POR ALE ES

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More