Dominion Resources Inc. (D) reported second-quarter 2014 operating earnings of 93 cents per share, lagging the Zacks Consensus Estimate of 61 cents by 2.1%.
Earnings were below the year-ago figure of $1.00 by 7% but within the guidance range of 90 cents to $1.05 for the quarter. The year-over-year decline was primarily due to a cooler-than-normal weather in Dominion’s regulated electric service territory and the absence of a benefit from an asset contribution to Blue Racer.
GAAP earnings were 90 cents per share compared with 98 cents per share in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to a charge associated with costs related to a potential third unit at the North Anna power station.
Total Revenue
Dominion’s operating revenue of $3.05 billion in the third quarter decreased nearly 11.3% year over year.
The decline in the top line was primarily due to lower contribution from Dominion Generation and Dominion Energy, marginally offset by a stronger Dominion Virginia Power.
Total revenue was also lower than the Zacks Consensus Estimate of $3.25 billion by 6.3%.
Highlights of the Release
Total operating expenses in the quarter decreased 13.5% year over year to $2.04 billion. The decline in total expenses was primarily due to a 32.9% year-over-year drop in energy fuel and other energy related purchases.
Interest and related charges in the reported quarter were $228 million compared with $217 million in the year-ago quarter.
The milder summer impacted the demand for electricity, as a result of which Virginia Power despite increasing its customer base by 1% sold less electricity. Total electricity delivered by Virginia Power in the reported quarter fell by 0.6% year over year to 21,918 Gwh.
Segment Update
Dominion Virginia Power recorded revenues of $484 million in the third quarter of 2014, up 2.8% year over year. The utility recorded net income of $119 million or 20 cents per share in the third quarter of 2014, down 1.6% year over year.
Dominion Energy reported revenues of $603 million, down 6.1% year over year. Dominion Energy recorded earnings of $144 million or 25 cents per share, down 14.8% year over year.
Dominion Generation’s revenues decreased nearly 14.8% year over year to $1.99 billion. Its earnings were $326 million or 56 cents per share, down 4.2% year over year.
Corporate and Others incurred a loss of 8 cents per share, on par with the year-ago quarter.
Financial Update
Dominion exited the quarter with cash and cash equivalents of $218 million, down from $316 million as of Dec 31 2013.
Long-term debt at quarter end increased to $17.2 billion from $16.88 billion at the prior-year end.
Cash from operating activities in the first nine months of 2014 decreased to $2.41 billion from $2.95 billion in the comparable year-ago period.
Looking Ahead
Dominion expects to generate fourth-quarter operating earnings in a range of 80 cents to 90 cents per share.
The fourth-quarter results are likely to benefit from more normal temperatures in its service territories and higher revenues from its growth projects.
Dominion Resources reaffirmed its 2014 operating earnings guidance of $3.35 to $3.65 per share.
Other Company Releases
American Electric Power Co., Inc.’s (AEP) earnings per share of $1.01 in the third quarter 2014 lagged the Zacks Consensus Estimate of $1.03 by nearly 1.9%.
CMS Energy Corp. (CMS) reported third-quarter earnings of 37 cents per share, lagging the Zacks Consensus Estimate of 41 cents by 9.8%
DTE Energy Co. (DTE) reported third-quarter 2014 operating earnings per share of $1.02, lagging the Zacks Consensus Estimate of $1.11 by 8.1%.
Zacks Rank
Dominion Resources holds a Zacks Rank #3 (Hold).
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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment