Dominion Energy (NYSE:D) Earnings Approach: What to Expect

Dominion Energy Inc. (NYSE: D) is on the cusp of releasing its third-quarter 2025 earnings report tomorrow, before the market opens. The utility giant's performance is being closely scrutinized by analysts and industry observers alike, as the results will provide critical insights into the company's financial health and strategic direction. The stock is currently priced around $59.60, down 2.5% in the last five days, underscoring the market's tentativeness ahead of the earnings release.

The consensus among analysts is that Dominion Energy will report earnings of $0.95 per share on revenue of approximately $4.25 billion for the quarter. The company itself has reaffirmed its full-year operating earnings forecast for 2025, projecting earnings between $3.32 and $3.46 per share. Meeting or exceeding these expectations is crucial for maintaining market confidence and potentially boosting the stock price. A miss, however, could lead to a significant sell-off.

Adding to the significance of the impending earnings report is Dominion Energy's commitment to returning value to its shareholders. The company's Board of Directors recently declared a quarterly dividend of $0.6675 per share of common stock, payable on December 20th, to shareholders of record as of December 4th. Dominion pays an annualized dividend of $2.67 per share, which represents a 4.4% yield based on the current stock price.

However, Dominion Energy is also actively managing its capital structure. The company announced plans to redeem all outstanding shares of its 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, effective December 15, 2024. This redemption, priced at $1,000 per share, aims to optimize the company's financial standing, and reduce future dividend obligations. This move can be seen as a proactive step towards improving its financial flexibility.

Currently, nine analysts have assigned an average rating of “Hold” to Dominion Energy's stock, with a 12-month average price target of $63.78. This suggests a potential upside of approximately 8.12% from the current stock price. The relatively conservative price target reflects a wait-and-see approach, with analysts likely seeking further confirmation of the company's financial performance and strategic execution.

While the prevailing sentiment surrounding Dominion Energy appears cautiously optimistic, a contrarian viewpoint suggests that the market may be underestimating the company's potential. The focus on short-term earnings and analyst ratings might be overshadowing the long-term value proposition that Dominion offers.

The company's investments in renewable energy and its commitment to reducing carbon emissions position it favorably in a rapidly evolving energy landscape. Additionally, Dominion's regulated utility business provides a stable and predictable revenue stream, which should not be discounted. The redemption of preferred stock, while seemingly a minor detail, could signal a broader strategic shift towards greater financial efficiency and shareholder value creation.

Also, the current price does not appear to factor in the potential gains from increased infrastructure spending and government initiatives aimed at modernizing the energy grid. Therefore, the current “Hold” rating may be a missed opportunity, and Dominion Energy could be poised for significant growth in the coming years.

Dominion Energy's upcoming earnings report is a crucial event that could significantly impact its stock price and market sentiment. While analysts remain cautiously optimistic, the company's strategic initiatives, dividend payouts, and long-term growth potential warrant close attention. The energy sector is in flux, and Dominion's ability to navigate these changes will ultimately determine its success.