Richmond, Virginia-based Dominion Energy, Inc. (D) provides regulated electricity and natural gas services. Valued at a market cap of $46.9 billion, the company generates, distributes, and transmits electricity to various residential, commercial, industrial, and governmental customers.
This utility company has lagged behind the broader market over the past 52 weeks. Shares of D have gained 5.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.2%. However, on a YTD basis, the stock is up 2.1%, outpacing SPX’s 3.7% downtick.
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Narrowing the focus, D has also underperformed the Utilities Select Sector SPDR Fund’s (XLU) 14% uptick over the past 52 weeks and 5.8% rise on a YTD basis.
On May 1, Dominion Energy delivered better-than-expected Q1 results, prompting its share price to rise marginally on that day. The company’s revenue improved 12.2% year-over-year to $4.1 billion, surpassing the consensus estimates. Meanwhile, its adjusted operating earnings of $0.93 per share advanced 69.1% from the year-ago quarter and exceeded Wall Street expectations by a notable margin of 20.8%. Strong growth in its Virginia and South Carolina segments’ net income supported the results.
Additionally, D reiterated its fiscal 2025 operating earnings guidance in the range of $3.28 to $3.52 per share.
For the current fiscal year, ending in December, analysts expect D’s EPS to grow 22.4% year over year to $3.39. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 18 analysts covering the stock, the consensus rating is a “Hold” which is based on three “Strong Buy,” 14 “Hold,” and one “Strong Sell” rating.
This configuration is slightly more bearish than two months ago, with no analyst suggesting a “Strong Sell” rating.
On May 2, Evercore Inc. (EVR) analyst Durgesh Chopra maintained a “Hold” rating on D and set a price target of $61, which indicates a 10.9% potential upside from the current levels.
The mean price target of $60 represents a 9.1% potential upside from D’s current price levels, while the Street-high price target of $69 suggests an upside potential of 25.5%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
