Dominion Energy’s Revenue Soars 15%—But Why Is Its Stock Lagging?
Dominion Energy, a diversified energy company, has reported a significant boost in its third-quarter operating revenues, up 14.9% year-over-year to $4.53 billion, surpassing analyst expectations. Despite this, the company's stock market performance has lagged behind the S&P 500 Index.
Dominion Energy's earnings per share (EPS) are expected to grow by 22.7% year-over-year to $3.40 in fiscal 2025, according to Wall Street analysts. The company's market capitalization stands at $50.66 billion. However, the S&P 500 Index has gained 17.5% and 7.9% over the same periods, indicating Dominion Energy's underperformance on the stock market.
Over the past 52 weeks, Dominion Energy's stock has shown a modest gain of 1.9%, while it has dropped by 2.3% over the past three months. The company's operating earnings (non-GAAP basis) were $1.06 per share, exceeding the expected $0.93 per share. Despite this, analysts have a consensus rating of 'Hold' for Dominion Energy's stock market position, with only three 'Strong Buy' ratings among 21 analysts.
Dominion Energy has narrowed its 2025 operating earnings guidance range to $3.33 to $3.48 per share, expecting to meet or exceed the midpoint. The company operates a diverse energy business, providing power and natural gas services across multiple states. However, it faces regulatory uncertainties and cautious analyst sentiments, which have limited its stock market price performance.
