Power supplier The Southern Company (SO - Free Report) reported first-quarter 2022 earnings per share (excluding certain one-time items) of 97 cents, 6 cents ahead of the Zacks Consensus Estimate. The outperformance primarily stemmed from the positive effects of rates, usage and pricing changes.
However, the bottom line compared unfavorably with the year-ago quarter’s adjusted profit of 98 cents due to uptick in operations and maintenance costs.
The utility reported revenues of $6.6 billion. This beat the Zacks Consensus Estimate of $6 billion and was 12.5% higher than first-quarter 2021 sales.
The firm is guiding for earnings per share of $3.50-$3.60 this year and 80 cents for the June quarter.
Overall Sales Breakup
Southern Company’s wholesale power sales rose 15.3%, which was complemented by a rise in retail electricity demand.
Overall, there was an upward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter were up 5% from the same period last year.
Southern Company’s total retail sales moved up 1.5%, with residential, industrial and commercial sales increasing 0.5%, 1.7% and 2.3%, respectively.
Expenses Summary
The power supplier’s operations and maintenance cost rose 10.5% year-over-year to $1.5 billion, while the utility’s total operating expense for the period — at $5.3 billion — was up 22.1% from the prior-year level.
Zacks Rank & Stock Picks
Southern Company carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the utility space could look at better options like Ameren Corporation (AEE - Free Report) , NiSource Inc. (NI - Free Report) and Consolidated Edison (ED - Free Report) . All the firms carry a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren Corporation: Ameren is valued at around $24.3 billion. For 2022, AEE has a projected earnings growth rate of 6%.
Ameren delivered a four-quarter average earnings surprise of 3.9%. Headquartered in Saint Louis, MO, AEE shares have gained around 15.7% in a year.
NiSource Inc.: NiSource is valued at around $12.2 billion. For 2022, NI has a projected earnings growth rate of 5.8%.
NiSource delivered a four-quarter average earnings surprise of 1.4%. Headquartered in Merrillville, IN, NI shares have gained around 21.7% in a year.
Consolidated Edison: Consolidated Edison is valued at around $33.6 billion. For 2022, ED has a projected earnings growth rate of 2.3%.
Consolidated Edison delivered a four-quarter average earnings surprise of 1.4%. Headquartered in New York, NI shares have gained around 29.3% in a year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Power supplier The Southern Company (SO - Free Report) reported first-quarter 2022 earnings per share (excluding certain one-time items) of 97 cents, 6 cents ahead of the Zacks Consensus Estimate. The outperformance primarily stemmed from the positive effects of rates, usage and pricing changes.
However, the bottom line compared unfavorably with the year-ago quarter’s adjusted profit of 98 cents due to uptick in operations and maintenance costs.
The utility reported revenues of $6.6 billion. This beat the Zacks Consensus Estimate of $6 billion and was 12.5% higher than first-quarter 2021 sales.
The firm is guiding for earnings per share of $3.50-$3.60 this year and 80 cents for the June quarter.
Overall Sales Breakup
Southern Company’s wholesale power sales rose 15.3%, which was complemented by a rise in retail electricity demand.
Overall, there was an upward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter were up 5% from the same period last year.
Southern Company’s total retail sales moved up 1.5%, with residential, industrial and commercial sales increasing 0.5%, 1.7% and 2.3%, respectively.
Expenses Summary
The power supplier’s operations and maintenance cost rose 10.5% year-over-year to $1.5 billion, while the utility’s total operating expense for the period — at $5.3 billion — was up 22.1% from the prior-year level.
Zacks Rank & Stock Picks
Southern Company carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the utility space could look at better options like Ameren Corporation (AEE - Free Report) , NiSource Inc. (NI - Free Report) and Consolidated Edison (ED - Free Report) . All the firms carry a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren Corporation: Ameren is valued at around $24.3 billion. For 2022, AEE has a projected earnings growth rate of 6%.
Ameren delivered a four-quarter average earnings surprise of 3.9%. Headquartered in Saint Louis, MO, AEE shares have gained around 15.7% in a year.
NiSource Inc.: NiSource is valued at around $12.2 billion. For 2022, NI has a projected earnings growth rate of 5.8%.
NiSource delivered a four-quarter average earnings surprise of 1.4%. Headquartered in Merrillville, IN, NI shares have gained around 21.7% in a year.
Consolidated Edison: Consolidated Edison is valued at around $33.6 billion. For 2022, ED has a projected earnings growth rate of 2.3%.
Consolidated Edison delivered a four-quarter average earnings surprise of 1.4%. Headquartered in New York, NI shares have gained around 29.3% in a year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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