SCANA Corporation (SCG) reported financial results for its first quarter of 2010. Earnings per share came in at $1.02 compared with the Zacks Consensus Estimate of 97 cents and the year-earlier earnings of 94 cents.
Operational Performance
SCANA had revenues of $1.43 billion compared with $1.34 billion in the year-ago quarter. All businesses witnessed year-over-year revenue growth during the reported quarter, reflecting an improving macro backdrop and favorable weather conditions.
SCANA’s principal subsidiary – South Carolina Electric & Gas Company − reported EPS of 51 cents, in line with the comparable quarter last year. The company modestly increased its customer base from the year-earlier level. Natural gas and electric customers increased 1.2% and 1.1%, respectively.
PSNC Energy reported EPS of 25 cents, identical with the year-ago quarter. This was due to improved margins, partially offset by increased operating expenses.
SCANA Energy reported EPS of 24 cents compared with 18 cents in the year-ago quarter. The increase is attributable to higher volumes due to extremely cold weather conditions.
Outlook
The company maintained its previous fiscal 2010 EPS guidance in the range of $2.85 to $3.05. The 2010 guidance assumes normal weather in the company’s electric and natural gas service areas. The company continues to expect an average annual earnings growth rate of 4%−6% over the next 3 to 5 years.
We believe SCANA is on track to meet this year’s earnings guidance range, given the company’s continuing cost-control initiatives and an improving macro environment.
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