Dominion Resources Inc. (NYSE:D) reported fourth quarter and full year results this morning, and the news was mixed. For the quarter, EPS hit $0.60 on $348 million in income, compared with EPS of $0.52 last year on income of $299 million. Revenue was $4.17 billion. Analysts expected EPS of $0.68 on revenue of $3.51 billion.
For the full year, Dominion reported GAAP net income of $1.83 billion,compared with $2.54 billion in 2007. The 2007 figure includes about$1.5 billion from the sale of certain assets. Operating earnings for2008 totaled $1.83 billion, compared with 2007 operating earnings of$1.68 billion. EPS for the full year hit $3.16, compared with EPS in2007 of $2.56.
Dominion attributed improved quarterly earnings to "lower outage costs"at its plants, lower taxes, lower expenses, and better margins from itsmerchant power business. The company also provided guidance of$0.85-$0.90 EPS for the first quarter of 2009.
The company did not provide guidance for the full year in its releasebecause it was unwilling to predict the effects of "matters such as,but not limited to, divestitures or changes in accounting principles"on GAAP earnings. However, in a 43-page guidance document available onDominion’s web site,2009 operating EPS is estimated at $3.20-$3.30. Operating EPS estimatesfor 2010 total $3.33-$3.50.
Dominion operates both regulated and merchant power generation,electricity transmission lines, and natural gas pipelines and storageand gathering systems. In the last five years, the stock’s high is$48.50/share, which it hit last October. Over the same five years, thestock has appreciated by about $2.50/share. The company’s market cap isabout $21 billion.
Utilities aren’t sexy or exciting and Dominion doesn’t break that mold.Still, the mix of regulated rates and merchant sales is providingsteady, if not spectacular, returns. Dominion’s shares are up about 2%this morning.
Paul Ausick
January 29, 2009
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.