SCANA Corp Earnings: Four Quarters of Rising Profit Now Broken

S&P 500 (NYSE:SPY) component SCANA Corporation (NYSE:SCG) reported its results for the first quarter. SCANA is engaged in the generation and sale of electricity, as well as in the purchase, sale and transportation of natural gas to its customers. It conducts other energy-related businesses and provides fiber optic communications in South Carolina.

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SCANA Earnings Cheat Sheet for the First Quarter

Results: Net income for SCANA Corporation fell to $121 million (91 cents per share) vs. $128 million ($1 per share) a year earlier. This is a decline of 5.5% from the year-earlier quarter.

Revenue: Fell 13.6% to $1.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SCANA Corporation fell short of the mean analyst estimate of $1.02 per share. It fell short of the average revenue estimate of $1.24 billion.

Quoting Management: “The first quarter was historic for SCANA as we received the Combined Construction and Operating Licenses for two new nuclear units,” said Jimmy Addison, Executive Vice President and Chief Financial Officer. “Although we experienced one of the mildest winters in several decades, the impact to earnings was tempered by weather normalization mechanisms in our regulated subsidiaries.”

Key Stats:

Last quarter’s profit decrease ends a four-quarter streak of profit increases. In the fourth quarter of the last fiscal year, net income rose 3.2% from the year earlier, while the figure increased 4% in the third quarter of the last fiscal year, 3.7% in the second quarter of the last fiscal year and 0.8% in the first quarter of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the fourth quarter of the last fiscal year, it missed expectations by 4 cents with net income of 75 cents versus a mean estimate of net income of 79 cents per share.

Revenue has fallen in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 9.7% to $1.03 billion from the year-earlier quarter.

Cost of sales dropped to $728 million, down 18.7% from the year-earlier quarter. Last quarter, cost of sales was 65.8% of revenue versus 69.9% a year earlier.

Looking Forward: The average estimate for the second quarter is steady at 47 cents a share. At $3.14 per share, the average estimate for the fiscal year has fallen from $3.18 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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