Should You Buy Dominion Energy Stock Ahead of Q4 Earnings Report?

Dominion Energy Inc. D is expected to report an improvement in its bottom line when it reports fourth-quarter 2024 results on Feb. 12, before market open.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for D’s fourth-quarter revenues is pegged at $3.51 billion, indicating a nominal decline of 0.64% from the year-ago reported figure.The Zacks Consensus Estimate for D’s fourth-quarter earnings is pegged at 54 cents per share, indicating growth of 86.21% from the year-ago reported figure. Dominion Energy expects fourth-quarter earnings in the range of 50-65 cents per share.Image Source: Zacks Investment ResearchWhat the Zacks Model UnveilsOur model predicts a likely earnings beat for Dominion Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below. Dominion Energy Inc. Price and EPS Surprise Dominion Energy Inc. price-eps-surprise | Dominion Energy Inc. QuoteYou can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Earnings ESP: Dominion Energy has an Earnings ESP of +4.32%.Zacks Rank: Dominion Energy currently carries a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.Some other stocks in the same industry that also have the combination of factors indicating an earnings beat this season are CenterPoint Energy CNP, OGE Energy OGE and PG&E Corporation PCG. CNP, OGE and PCG have an Earnings ESP of +0.63%, +2.41% and +1.64%, respectively, and carry a Zacks Rank #2 each.Factors Likely to Have Shaped D’s Q4 EarningsDominion Energy’s fourth-quarter earnings are expected to have gained from regulated investments and higher sales volume. The company’s quarterly results are likely to gain from robust commercial load growth driven by data centers.Fourth-quarter earnings are likely to have benefited from the lack of Millstone outages, lower interest expenses, higher energy margins and modestly higher nuclear PTC contribution.Economic development and population growth in Virginia and South Carolina are also likely to have bolstered earnings. New electric rates effective from Sept. 1, 2024, in South Carolina will also boost fourth-quarter earnings.Dominion Energy’s fourth-quarter earnings are expected to have been impacted by higher-than-expected financing costs and normal course movement of operating and maintenance expenses from the first half to the second half of the year.Fourth-quarter earnings are also likely to have been adversely impacted by the earlier-than-planned closing of the CVOW partnership because of the associated non-controlling interest.D’s Price Performance and ValuationD’s shares have gained 20.8% in the past year compared with its industry’s rally of 19.7%.Image Source: Zacks Investment ResearchDominion Energy is currently valued at a premium compared to its industry on a forward 12-month P/E basis. Given its high valuation at present, it is better to hold positions in the stock and wait for a better entry point.Image Source: Zacks Investment ResearchInvestment ThesisD's systematic investment in increasing clean energy production volumes and strengthening its grid will assist in providing reliable service to its customers. Dominion Energy is experiencing commercial load growth driven by Data Centers demand. Attractive customer growth across its Virginia and South Carolina service areas is also boosting demand for its services. Rising demand for clean energy is a tailwind for the company.Dominion Energy has plans to upgrade electric infrastructure by installing smart meters and grid devices, as well as enhance services to customers through the customer information platform. The company is also working on a project of strategic undergrounding of distribution lines. These initiatives will increase the resilience of its operation and enable it to serve the expanding customer base more efficiently.Wrapping UpDominion Energy is set to benefit from rising demand from an expanding customer base, new electric rates and regulated investment to strengthen its infrastructure.Higher costs and the earlier-than-planned closing of the CVOW partnership can offset some positives.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report OGE Energy Corporation (OGE): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks