Energy holding company, SCANA Corp.’s third-quarter 2016 earnings of $1.32 per share beat the Zacks Consensus Estimate of $1.05 and also improved from the year-ago figure of $1.04.
The company’s quarterly operating revenues increased to $1,093 million from $1,068 million in the year-ago period.
Segment Performance
South Carolina Electric & Gas Company (SCE&G): Quarterly earnings from this segment, SCANA's principal subsidiary, were $1.43 per share. The segment had earned $1.17 per share in the year-ago quarter.
PSNC Energy: This segment incurred a loss of 5 cents during the quarter, wider than a loss of 4 cents in the prior-year quarter.
SCANA Energy-Georgia: The segment – comprising SCANA’s retail natural gas marketing business in Georgia – posted a loss of 1 cent. It had incurred a loss of 3 cents in third-quarter 2015.
Corporate and Other, Net: This business segment posted a loss of 5 cents per share, narrower than a loss of 6 cents in the year-ago quarter.
Guidance
SCANA reaffirmed its 2016 earnings guidance of $3.90–$4.10 per share. The company targets an average annual growth rate of 4–6% over the next three to five years.
Our Take
Going forward, we expect SCANA to benefit from its nuclear expansion projects and the new electricity generation plants within its service territory. The company is a stable, relatively strong and regulated integrated electric utility supported by favorable regional demographics and electric utility rate.
However, we are apprehensive of the company’s sensitivity to changes in coal, gas, oil and other commodity prices. Construction costs and delays could affect the timing of rate base growth, earnings, cash flow and balance sheet quality.
Zacks Rank
Currently, SCANA carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported positive earnings surprises in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
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Energy holding company, SCANA Corp.’s third-quarter 2016 earnings of $1.32 per share beat the Zacks Consensus Estimate of $1.05 and also improved from the year-ago figure of $1.04.
The company’s quarterly operating revenues increased to $1,093 million from $1,068 million in the year-ago period.
Segment Performance
South Carolina Electric & Gas Company (SCE&G): Quarterly earnings from this segment, SCANA's principal subsidiary, were $1.43 per share. The segment had earned $1.17 per share in the year-ago quarter.
PSNC Energy: This segment incurred a loss of 5 cents during the quarter, wider than a loss of 4 cents in the prior-year quarter.
SCANA Energy-Georgia: The segment – comprising SCANA’s retail natural gas marketing business in Georgia – posted a loss of 1 cent. It had incurred a loss of 3 cents in third-quarter 2015.
Corporate and Other, Net: This business segment posted a loss of 5 cents per share, narrower than a loss of 6 cents in the year-ago quarter.
Guidance
SCANA reaffirmed its 2016 earnings guidance of $3.90–$4.10 per share. The company targets an average annual growth rate of 4–6% over the next three to five years.
Our Take
Going forward, we expect SCANA to benefit from its nuclear expansion projects and the new electricity generation plants within its service territory. The company is a stable, relatively strong and regulated integrated electric utility supported by favorable regional demographics and electric utility rate.
However, we are apprehensive of the company’s sensitivity to changes in coal, gas, oil and other commodity prices. Construction costs and delays could affect the timing of rate base growth, earnings, cash flow and balance sheet quality.
Zacks Rank
Currently, SCANA carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported positive earnings surprises in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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