Yahoo Finance Results: Dominion Energy, Inc. Delivered A Surprise Loss And Now Analysts Have New Forecasts
Dominion Energy, Inc. (NYSE:D) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues fell 5.1% short of expectations, at US$4.5b. Earnings correspondingly dipped, with Dominion Energy reporting a statutory loss of US$0.34 per share, whereas the analysts had previously modelled a profit in this period. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dominion Energy after the latest results.
Check out our latest analysis for Dominion Energy
Taking into account the latest results, the current consensus from Dominion Energy's ten analysts is for revenues of US$18.2b in 2020, which would reflect an okay 5.6% increase on its sales over the past 12 months. Per-share earnings are expected to leap 106% to US$4.36. In the lead-up to this report, the analysts had been modelling revenues of US$18.2b and earnings per share (EPS) of US$4.38 in 2020. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$85.28. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Dominion Energy analyst has a price target of US$95.00 per share, while the most pessimistic values it at US$79.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Dominion Energy's revenue growth will slow down substantially, with revenues next year expected to grow 5.6%, compared to a historical growth rate of 7.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.4% next year. Even after the forecast slowdown in growth, it seems obvious that Dominion Energy is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Dominion Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Dominion Energy analysts - going out to 2024, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Dominion Energy (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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