Power supplier Southern Company (SO - Free Report) reported third-quarter 2016 earnings per share (excluding certain one-time items) of $1.28, ahead of the Zacks Consensus Estimate and the year-ago adjusted profit of $1.17.
The strong numbers can be attributed to robust performance from its wholesale unit and favorable weather conditions.
The Atlanta-based utility’s quarterly revenue – at $6,264 million – came 16% higher than the third-quarter 2015 level of $5,401 million and was also ahead of the Zacks Consensus Estimate of $6,036.4 million.
Overall Sales Breakup
While wholesale sales jumped 18%, Southern Company’s retail electricity demand also increased amid warmer-than-normal weather conditions. This brought about an upward movement in overall electricity sales and usage. In fact, total electricity sales during the third quarter was up 5.7% from the same period last year.
Southern Company’s total retail sales rose 3.2%, with residential and commercial sales up by 8.9% and 3.4%, respectively. However, demand from industrial customers fell 3.3% from the year-ago period
Expenses Summary
Southern Company’s operations and maintenance cost increased 29% to $1,411 million, while the utility’s total operating expense for the period – at $4,322 million – was up 15% 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 Company (DTE - Free Report) . This Zacks Rank #1 (Strong Buy) stock offers excellent value and is worth buying now. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Power supplier Southern Company (SO - Free Report) reported third-quarter 2016 earnings per share (excluding certain one-time items) of $1.28, ahead of the Zacks Consensus Estimate and the year-ago adjusted profit of $1.17.
The strong numbers can be attributed to robust performance from its wholesale unit and favorable weather conditions.
The Atlanta-based utility’s quarterly revenue – at $6,264 million – came 16% higher than the third-quarter 2015 level of $5,401 million and was also ahead of the Zacks Consensus Estimate of $6,036.4 million.
Overall Sales Breakup
While wholesale sales jumped 18%, Southern Company’s retail electricity demand also increased amid warmer-than-normal weather conditions. This brought about an upward movement in overall electricity sales and usage. In fact, total electricity sales during the third quarter was up 5.7% from the same period last year.
Southern Company’s total retail sales rose 3.2%, with residential and commercial sales up by 8.9% and 3.4%, respectively. However, demand from industrial customers fell 3.3% from the year-ago period
Expenses Summary
Southern Company’s operations and maintenance cost increased 29% to $1,411 million, while the utility’s total operating expense for the period – at $4,322 million – was up 15% 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 Company (DTE - Free Report) . This Zacks Rank #1 (Strong Buy) stock offers excellent value and is worth buying now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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