ETFs In Focus After Utilities Q3 Results

The earnings season had a flying start with equity markets scaling record highs, owing to a slew of upbeat economic data, strong corporate performance and President Donald Trump’s tax reform proposal. However, the performance has been a mixed bag for utilities, with some beating market expectations, while a few failing to do so.

We will now discuss the performance of three companies, Dominion Energy Inc, NextEra Energy Inc and Duke Energy Corp.

Dominion Energy Inc

Shares of Dominion Energy Inc (D – Free Report) gained 0.7% at market close on Oct 30, 2017, owing to better-than-expected earnings. The company reported a year-over-year increase of 1.5% in net quarterly revenues.

Q3 Performance

Dominion reported non-GAAP earnings per share of $1.04, which surpassed the Zacks Consensus Estimate of $1.03 but came in lower than the year-ago figure of $1.14. However, revenues of $3.179 billion failed to beat the consensus mark of $3.327 billion. Income from operations increased to $1.2 billion from $1.145 billion in the year-ago quarter.

Operating Earnings

Power Delivery reported operating earnings of $138 million, decreasing from $139 million a year ago.

Power Generation registered operating earnings of $369 million, decreasing from $650 million a year ago.

Gas Infrastructure reported operating earnings of $187 million, increasing from $135 million a year ago.

Corporate and other incurred operating loss of $22 million compared with a loss of $208 million a year ago.

Outlook

Dominion Energy expects full-year 2017 operating earnings to be in the range of $3.40-$3.90 per share and fourth quarter operating earnings in the band of $0.80-$1.00 per share.

NextEra Energy

Shares of NextEra Energy Inc. (NEE – Free Report) lost 0.3% at market close on Oct 26, 2017, owing to the revenue miss. The company reported a 0.06% year-over-year increase in net quarterly revenues. Moreover, it beat the Zacks Consensus Estimate on earnings but missed on revenues.