Dominion Resources Falls Short of Expectations

Dominion Resources (NYSE: D) announced its results for the second quarter on July 28, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Dominion Resources failed to top EPS and revenue expectations. The company reported EPS of 58 cents/share versus the 60 cents/share estimate and revenues of $3.34 billion versus the $3.36 billion estimate. EPS fell 80.5% while revenue climbed 0.2% from the same period last year.

Income:
For the year, Dominion Resources reported net income of $3.17 per share. The company fells short of analysts projections of $3.26. According to the reported number, the company's income fell 80.9% from last year's levels.

Official Comment:
Thomas F. Farrell II, chairman, president and chief executive officer, said: "We are pleased with the second-quarter results that came in at the top end of our $0.50 to $0.60 per share guidance range.Most important, we continue to move forward on our long-term infrastructure growth plan, having completed several major projects and beginning several more. "In our Generation segment, Bear Garden, our 580-megawatt combined cycle plant, began commercial operation in May and was completed on time and on budget. Another major generation project, the 585-megawatt Virginia City Hybrid Energy Center, expected in service in summer 2012, is now about 90 percent complete and proceeding according to plan. We recently filed applications with the Virginia State Corporation Commission (SCC) for Warren County, a 1,300-megawatt gas-fired combined cycle plant. Pending regulatory approval, construction on this facility should start in the spring of 2012. Other recent regulatory filings include the conversions of the coal-fired Altavista, Hopewell and Southampton stations to biomass, a renewable energy source. We expect completion of these conversions in 2013, pending regulatory approvals."

Industry:
Dominion Resources' industry, utility-electric power, is currently reporting price/earnings growth of 2.6%. The company's EPS lags behind the industry average by 92.1%.

What to Do Next:
Now that you've gotten a round up of Dominion Resources' latest numbers, you can make a better-informed decision about whether to buy, sell or hold those shares. Whatever you do, be sure to visit us before the company's next earnings release for a full preview.

• To see up-to-date news on Dominion Resources, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here