Story updated at 9:50 a.m. to reflect market activity.
Shares of Dominion gained 0.1% to $69.97 in morning trading.
The analyst firm raised its EPS estimates for the company through 2016. Credit Suisse analysts expect Dominion to report earnings of $3.88 a share for 2015, up from previous estimates of $3.83 a share. For 2016 the analysts expect the company to report earnings of $4.02 a share, up from $3.96 a share.
Dominion is investing more to drive higher returns down the road, according to Credit Suisse analysts. The company "remains one of our favorite regulated names with a good calendar of datapoints," analysts Dan Eggers, Matthew Davis, and Thomas Murray wrote.
Separately, TheStreet Ratings team rates DOMINION RESOURCES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOMINION RESOURCES INC (D) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 35.16% is the gross profit margin for DOMINION RESOURCES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.65% trails the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, DOMINION RESOURCES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- DOMINION RESOURCES INC's earnings per share declined by 42.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DOMINION RESOURCES INC increased its bottom line by earning $3.09 versus $2.49 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $3.09).
- D, with its decline in revenue, underperformed when compared the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: D Ratings Report
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