The Dominion Energy, Inc. (NYSE:D) Analysts Have Been Trimming Their Sales Forecasts

Today is shaping up negative for Dominion Energy, Inc. (NYSE:D) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. The stock price has risen 4.2% to US$47.26 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

After the downgrade, the consensus from Dominion Energy's eight analysts is for revenues of US$15b in 2024, which would reflect a chunky 17% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$19b in 2024. It looks like forecasts have become a fair bit less optimistic on Dominion Energy, given the pretty serious reduction to revenue estimates.

See our latest analysis for Dominion Energy

We'd point out that there was no major changes to their price target of US$48.64, suggesting the latest estimates were not enough to shift their view on the value of the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dominion Energy's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2024. This indicates a significant reduction from annual growth of 5.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.7% per year. It's pretty clear that Dominion Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Dominion Energy going forwards.

Of course, this isn't the full story. We have estimates for Dominion Energy from its eight analysts out until 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.