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Why Is Southern Company (SO) Up 2.3% Since Its Last Earnings Report?
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It has been about a month since the last earnings report for The Southern Company (SO - Free Report) . Shares have added about 2.3% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
Southern Company reported fourth-quarter 2017 earnings per share (excluding certain one-time items) of 51 cents, above the Zacks Consensus Estimate of 46 cents and the year-ago profit of 30 cents. The outperformance stemmed from strength of its retail unit and lower operations and maintenance costs.
The Atlanta-based utility’s quarterly revenue – at $5,629 million – came higher than the fourth-quarter 2016 sales of $5,181 million and also beat the Zacks Consensus Estimate of $5,408 million.
Overall Sales Breakup
Southern Company’s wholesale power sales jumped 36.4%, while retail electricity demand strengthened amid favorable weather conditions. This brought about an upward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter was up 10.5% from the same period last year.
Southern Company’s total retail sales improved 4.1%, with residential, industrial and commercial sales up by 8.6%, 3.5% and 0.9%, respectively.
Expenses Summary
Southern Company’s operations and maintenance cost decreased 3.6% to $1,565 million but the utility’s total operating expense for the period – at $4,835 million – was up 5.2% from the prior-year level.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. In the past month, consensus estimates have shifted by 8.9% due to these changes.
At this time, SO has an average Growth Score of C, a grade with the same score on the momentum front. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
SO has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Southern Company (SO) Up 2.3% Since Its Last Earnings Report?
It has been about a month since the last earnings report for The Southern Company (SO - Free Report) . Shares have added about 2.3% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
Southern Company reported fourth-quarter 2017 earnings per share (excluding certain one-time items) of 51 cents, above the Zacks Consensus Estimate of 46 cents and the year-ago profit of 30 cents. The outperformance stemmed from strength of its retail unit and lower operations and maintenance costs.
The Atlanta-based utility’s quarterly revenue – at $5,629 million – came higher than the fourth-quarter 2016 sales of $5,181 million and also beat the Zacks Consensus Estimate of $5,408 million.
Overall Sales Breakup
Southern Company’s wholesale power sales jumped 36.4%, while retail electricity demand strengthened amid favorable weather conditions. This brought about an upward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter was up 10.5% from the same period last year.
Southern Company’s total retail sales improved 4.1%, with residential, industrial and commercial sales up by 8.6%, 3.5% and 0.9%, respectively.
Expenses Summary
Southern Company’s operations and maintenance cost decreased 3.6% to $1,565 million but the utility’s total operating expense for the period – at $4,835 million – was up 5.2% from the prior-year level.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. In the past month, consensus estimates have shifted by 8.9% due to these changes.
Southern Company (The) Price and Consensus
Southern Company (The) Price and Consensus | Southern Company (The) Quote
VGM Scores
At this time, SO has an average Growth Score of C, a grade with the same score on the momentum front. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
SO has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.