Questar (STR) Misses Q2 Earnings And Revenue Estimates
Zacks Investment Research | Aug 08, 2016 10:37PM ET
Natural gas-focused energy company, Questar Corp. (NYSE:STR) , reported adjusted second-quarter earnings of 20 cents per share that missed the Zacks Consensus Estimate of 22 cents. The quarterly earnings also decreased from the year-ago quarter adjusted profit of 23 cents per share. Seasonality of the business led to poor results for the company.
Questar reported second-quarter revenues of $174.1 million, down 12.6% from a year ago. Moreover, the quarterly revenues came in below the Zacks Consensus Estimate of $248 million.
Segment Analysis
Questar Gas:The segment generated $128.2 million in revenues, down 9.5% from the prior-year quarter, owing to seasonality of its business. As of Jun 30, 2016, Questar Gas served more than 999,000 customers, up 2.1% year over year. This helped improve margins and in turn, result in the significant improvement in operating income to $3.8 million from the year-ago quarter profit of $1.4 million.
Wexpro:Segment revenues plunged 81.2% year over year to $1.9 million in the quarter. Segmental operating income from continuing operations also fell to $39.1 million from $41.8 million in the prior-year quarter owing to lower average investment base and reduced return on contracts on new developments.
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