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The Gory Details on Dominion Resources's Double Fumble

By Seth Jayson - Updated Apr 7, 2017 at 12:07PM

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Just the facts, Fool.

Dominion Resources (NYSE: D) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Dominion Resources missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
Dominion Resources recorded revenue of $3.41 billion. The four analysts polled by S&P Capital IQ wanted to see revenue of $3.66 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $3.80 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.92. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.97 per share. GAAP EPS of $0.36 for Q3 were 48% lower than the prior-year quarter's $0.69 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.8%, 460 basis points worse than the prior-year quarter. Operating margin was 15.2%, 670 basis points worse than the prior-year quarter. Net margin was 6.1%, 420 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.12 billion. On the bottom line, the average EPS estimate is $0.70.

Next year's average estimate for revenue is $14.57 billion. The average EPS estimate is $3.11.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 609 members out of 654 rating the stock outperform, and 45 members rating it underperform. Among 177 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 164 give Dominion Resources a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dominion Resources is hold, with an average price target of $54.45.

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