Dominion Resources Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Dominion Resources (NYSE:D) will unveil its latest earnings on Thursday, October 25, 2012. Dominion Resources supplies electricity and natural gas to various regions across the United States.

Dominion Resources Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 98 cents per share, a rise of 3.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1. Between one and three months ago, the average estimate moved down. It has been unchanged at 98 cents during the last month. Analysts are projecting profit to rise by 3.6% versus last year to $3.16.

Past Earnings Performance: Last quarter, the company showed net income of 59 cents per share in the second quarter to fall in line with expectations, the company beat estimates by one cent in the first quarter. This comes after the company failed to meet analysts’ expectations in the previous two.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, profit fell 23.2% to $258 million (45 cents a share) from $336 million (58 cents a share) the year earlier, meeting analyst expectations. Revenue fell 8.6% to $3.05 billion from $3.34 billion.

Wall St. Revenue Expectations: Analysts are projecting a decline of 3.4% in revenue from the year-earlier quarter to $3.67 billion.

Analyst Ratings: There are mostly holds on the stock with 13 of 17 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 3.7% in the third quarter of the last fiscal year, 15.2% in fourth quarter of the last fiscal year and 13.9% in the first quarter and then fell again in the second quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 3.1% in the first quarter before dropping in the second quarter.

Stock Price Performance: From September 21, 2012 to October 19, 2012, the stock price rose 81 cents (1.5%), from $52.70 to $53.51. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 3% (+$1.57) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.69 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.75 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 6.1% to $4.71 billion while liabilities rose by 2.3% to $6.81 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Time to Buy This Dow Darling Now?

Are Google Shares a Buy Post-Earnings?

Should This Stock be in Your Portfolio After Its Latest Report?