Power supplier Southern Company (SO - Free Report) reported second-quarter 2016 earnings per share (excluding certain one-time items) of 74 cents, ahead of the Zacks Consensus Estimate of 69 cents and higher than the year-ago adjusted profit of 71 cents.
The strong numbers can be attributed to robust performance from its wholesale unit.
The Atlanta-based utility’s quarterly revenue – at $4,453 million – came 2.7% higher than the second-quarter 2015 level of $4,337 million but fell just short of the Zacks Consensus Estimate of $4,461 million amid a dip in retail sales.
Overall Sales Breakup
While wholesale sales increased 4.4%, this was partly offset by a decline in Southern Company’s retail electricity demand mild weather conditions. This brought about a slight downward movement in overall electricity sales and usage. Total electricity sales during the second quarter edged down 0.6% from the same period last year.
Southern Company’s total retail sales fell 1.6%, with residential, commercial and industrial sales down by 0.2%, 1.9% and 1.9%, respectively.
Expenses Summary
Southern Company’s operations and maintenance cost remained essentially flat at $1,099 million, while the utility’s total operating expense for the period – at $3,227 million – was also literally unchanged from the prior-year level.
Zacks Rank & Stock Picks
Southern Company – one of the largest generators of electricity in the nation along with the likes of Exelon Corp. (EXC - Free Report) and Duke Energy Corp. (DUK - Free Report) – currently retains a Zacks Rank #3 (Hold).
A better-ranked player from the same industry would be DTE Energy Co. (DTE - Free Report) . This Zacks Rank #2 (Buy) stock offers good value and is worth buying now.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Power supplier Southern Company (SO - Free Report) reported second-quarter 2016 earnings per share (excluding certain one-time items) of 74 cents, ahead of the Zacks Consensus Estimate of 69 cents and higher than the year-ago adjusted profit of 71 cents.
The strong numbers can be attributed to robust performance from its wholesale unit.
The Atlanta-based utility’s quarterly revenue – at $4,453 million – came 2.7% higher than the second-quarter 2015 level of $4,337 million but fell just short of the Zacks Consensus Estimate of $4,461 million amid a dip in retail sales.
Overall Sales Breakup
While wholesale sales increased 4.4%, this was partly offset by a decline in Southern Company’s retail electricity demand mild weather conditions. This brought about a slight downward movement in overall electricity sales and usage. Total electricity sales during the second quarter edged down 0.6% from the same period last year.
Southern Company’s total retail sales fell 1.6%, with residential, commercial and industrial sales down by 0.2%, 1.9% and 1.9%, respectively.
Expenses Summary
Southern Company’s operations and maintenance cost remained essentially flat at $1,099 million, while the utility’s total operating expense for the period – at $3,227 million – was also literally unchanged from the prior-year level.
Zacks Rank & Stock Picks
Southern Company – one of the largest generators of electricity in the nation along with the likes of Exelon Corp. (EXC - Free Report) and Duke Energy Corp. (DUK - Free Report) – currently retains a Zacks Rank #3 (Hold).
A better-ranked player from the same industry would be DTE Energy Co. (DTE - Free Report) . This Zacks Rank #2 (Buy) stock offers good value and is worth buying now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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