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Dominion Resources (D) Q3 Earnings: What's in the Cards?

Dominion Resources Inc.D will release third-quarter 2015 financial results before the market bell on Nov 2. The company reported a positive earnings surprise of 1.39% in the previous quarter. Let's see how things are shaping up prior to this announcement.

Factors to Consider

Dominion Resources projects earnings per share in the range of 95 cents to $1.10 for third-quarter 2015, higher than 93 cents recorded in the third quarter of 2014. Increased revenues from growth projects and favorable weather patterns in its service territories are expected to boost the company's performance.

Meanwhile, the ongoing capital expenditure of about $19.2 billion allocated for growth projects through 2020 will help the company serve its customers in an efficient manner and further lower its carbon footprints from current levels.

In the preceding quarter, the company's results were impacted by higher operating expenses and share dilution, which might affect results in the third quarter as well.

Earnings Whispers

Our proven model does not conclusively show that Dominion Resources is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here.

Zacks ESP : Dominion Resources has an Earnings ESP of -0.94% as the Most Accurate estimate stands at $1.05 while the Zacks Consensus Estimate is pegged at $1.06.

Zacks Rank: Dominion Resources' Zacks Rank #3 increases the predictive power of ESP. However, the company's.-0.94% ESP makes an earnings surprise call unlikely this season.

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

Stocks to Consider

Here are a few operators in the electric utility space worth considering on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter.

Ameren Corp. AEE has an Earnings ESP of +1.53% and a Zacks Rank #2.

Duke Energy Corp. DUK has an Earnings ESP of +0.66% and a Zacks Rank #3.

WEC Energy Group, Inc. WEC has an Earnings ESP of +3.39% and a Zacks Rank #3.

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DOMINION RES VA (D): Free Stock Analysis Report

AMEREN CORP (AEE): Free Stock Analysis Report

WEC ENERGY GRP (WEC): Free Stock Analysis Report

DUKE ENERGY CP (DUK): Free Stock Analysis Report

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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.

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