Dominion Energy (NYSE: D) released its unaudited earnings and revenue results on Friday, February 11, 2022.
What to look for: The company reported revenue and profit increase, but the results came short of analysts expectations. Also, the energy company has initiated its Q1 2022 operating earnings guidance and full-year 2022 earnings per share guidance.
Earnings: Stockearning’s Estimated EPS was expected to be $0.91 on adjusted, but the company produced adjusted earnings per share of $0.9 for Q4 2021. The company’s net income was $1.34 billion or $1.63 per share compared to $682 million or $0.82 per share a year ago. Historical EPS performance shows that the company has topped EPS estimates eighty times (66%) in the past twelve quarters and missed four times (33%). For the full year ending December 31, 2021, the company had earnings of $3.2 billion or $3.86 per share. The company expects Q1 2022 earnings of between $1.1 and $1.25 per share, and for the whole year, it anticipates earnings to range between $3.95 per share and $4.25 per share.
Revenue: Dominion also missed revenue estimates in Q4, with the company posting operating revenue of $3.88 billion versus analysts' projections of $4.04 billion. The company had total revenue of $13.964 billion for the whole year, a drop of 1.5% from the year before. At the end of the year, the total long term debt was $37.426 billion, and cash from operating activities was $4.037 billion, a 22.8% drop from the year before.
Stock movement: Dominion shares have gained 4.7% since the company released its third-quarter earnings. Interestingly, the company’s shares have been DOWN 26 times out of the past 47 quarters. So, the historical price reaction suggests a 55% probability of the share price going DOWN following the fiscal Q4 2021 earnings release. According to the Stockearning algorithm, the predicted first-day move is +/-1%, while the predicted move on the seventh day is +/-1%.
What analysts are saying: Barclays analyst Eric Beaumont commenced coverage on the stock with a Hold rating and a price target of $86. Beaumont said that the company has exceptional visibility into future capital deployment prospects. However, the analyst told investors in a research note that while "top-quartile valuation multiples are justifiable", it could take time for the company to transform its earnings profile.
Goldman Sachs analyst Michael Lapides downgraded Dominion from Hold to Sell with a price target of $72. Lapides said that the downgrade is attributable to a relative valuation call, even though he sees possible risks emerging in the next three years, even one with timelines that are hard to predict.
UBS analyst Ross Fowler upgraded Dominion from Hold to Buy and raised his price target from $81 to $98. In a research note, the analyst told investors that Dominion is currently undervalued compared to kits long-dated regulated growth story rate base and considering its clean regulatory calendar. Fowler added that the company's ESG sponsorship appeal would expand in 2022 with investors looking to support firms with clean energy transition.
Related News
Palantir Technologies (NYSE: PLTR) Earnings Expectations, Earnings of $0.04 Per Share
Arista Networks Inc. (ANET) Earnings Expectations, Revenue of $750.58 million, and EPS of $0.74