Dominion Energy lowers Q2 guidance: ‘it’s a little too risky for me’

July 01, 2023 05:32 AM AEST | By Invezz

Dominion Energy lowers Q2 guidance: ‘it’s a little too risky for me’ — Image source: Invezz

Dominion Energy’s updated Q2 guidance

The Richmond-headquartered firm now expects to earn between 44 cents a share to 50 cents a share in its second financial quarter. In its press release, Dominion Energy said the following factors made it lower its outlook:

Estimated impact of historically mild weather, unplanned outages at the Millstone Power Station, and positive factors such as lower costs.

Its previous guidance for earnings was 58 cents a share to 68 cents a share. Dominion Energy is expected to report its second quarter financial results in the first week of August.

“D” is currently down close to 20% versus the start of the year.

Jim Cramer’s view on Dominion Energy

Dominion Energy did not issue its outlook for the full year today. It’s expected at an investor event scheduled for the third quarter.

The energy stock currently pays a dividend yield of more than 5.0%. Still, famed investor Jim Cramer would rather stay away from it. Earlier this month on Mad Money, he said:

It’s a little too risky for me. I don’t get into utilities to reach for yields. I prefer American Electric Power or I prefer Duke.

Morgan Stanley analyst Stephen Byrd also rates Dominion Energy at “equal weight”. He, in fact, recently lowered his price objective on the utility stock to $58 that does not suggest any further upside from here.

The post Dominion Energy lowers Q2 guidance: ‘it’s a little too risky for me’ appeared first on Invezz.

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