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SCANA's (SCG) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

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Energy holding company SCANA Corp.’s (SCG - Free Report) second-quarter 2017 earnings of 85 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also increased from 74 cents in the year-ago comparable quarter. The growth can be attributed to higher electric and gas margins, owing to increase in customer base.

Quarterly operating revenues of $1,001 million increased from $905 million in the year-ago comparable quarter.
 

Scana Corporation Price, Consensus and EPS Surprise

 

Scana Corporation Price, Consensus and EPS Surprise | Scana Corporation Quote

Segment Performance

South Carolina Electric & Gas Company (SCE&G): Quarterly earnings from this segment, SCANA's principal subsidiary, were 88 cents per share, up 11.4% from 79 cents in the year-ago quarter. Higher electric and gas margins along with lower expenses primarily led to the growth.

As of Jun 30, SCE&G was serving about 362,000 natural gas customers, up 2.9% annually and 718,000 electric customers, up 1.6% annually.

PSNC Energy: This segment recorded profit of 1 cent per share during the second quarter compared with breakeven result in the prior-year quarter. The upside was driven by customer growth and improved gas margin.

SCANA Energy Marketing: The segment posted earnings of 1 cent per share compared with breakeven in the year-ago comparable quarter. This was attributable to increased gas margin, which came on the back of improvement in sales volumes.

Corporate and Other, Net: This business segment recorded a loss of 5 cents per share and remained flat on a year-over-year basis.

Expenses

During the second quarter, the company reported operating expenses of $752 million compared with $684 million in the prior-year quarter.

Guidance

SCANA reaffirmed its 2017 GAAP-adjusted weather-normalized earnings guidance in the range of $4.15–$4.35 per share. The company continues to expect average annual growth rate for adjusted earnings in the range of 4–6% over the next three to five years.  

Q2 Price Performances

The pricing chart reveals that the company’s shares outperformed the industry in the last three months. During this period, the company’s shares have gained 3.4% compared with the industry’s gain of 3.1%.

Zacks Rank

Currently, SCANA carries a Zacks Rank #4(Sell). Some better ranked stocks in the same space include Global Partners LP (GLP - Free Report) , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Partners delivered a positive earnings surprise of 1200.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 415.30%.

Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.

TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.

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