Power supplier Southern Company (SO - Free Report) reported fourth-quarter 2018 earnings per share (excluding certain one-time items) of 25 cents, a penny above the Zacks Consensus Estimate. The outperformance stemmed from favorable regulatory results and strength of its retail unit.
However, Southern Company’s bottom line witnessed a fall from the year-ago quarter’s profit of 51 cents on lower sales from the wholesale segment.
The Atlanta-based utility’s quarterly revenue – at $5.3 billion – came 5.2% lower than the fourth-quarter 2017 sales but beat the Zacks Consensus Estimate of $4.9 billion.
Overall Sales Breakup
Southern Company’s wholesale power sales decreased 5.3%. This was partially offset by the marginal rise in retail electricity demand amid favorable weather conditions and constructive regulatory results.
Consequently, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter was down 0.8% from the same period last year.
Southern Company’s total retail sales improved 0.7%, with residential and commercial sales going up by 3.7% and 0.1%, respectively. However, industrial sales declined 1.4%.
Expenses Summary
The power supplier’s operations and maintenance cost increased 2% to $1.7 billion, while the utility’s total operating expense for the period – at $4.8 billion – was down 3% 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 Corporation (EXC - Free Report) and Duke Energy Corporation (DUK - Free Report) – currently retains a Zacks Rank #2 (Buy).
Apart from Southern Company, one can also look at another player in the space – Ameren Corporation (AEE - Free Report) that also sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren boasts of a good earnings surprise history. It has a 75% track of outperforming estimates over the last four quarters at an average rate of 8.6%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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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 >>
Power supplier Southern Company (SO - Free Report) reported fourth-quarter 2018 earnings per share (excluding certain one-time items) of 25 cents, a penny above the Zacks Consensus Estimate. The outperformance stemmed from favorable regulatory results and strength of its retail unit.
However, Southern Company’s bottom line witnessed a fall from the year-ago quarter’s profit of 51 cents on lower sales from the wholesale segment.
The Atlanta-based utility’s quarterly revenue – at $5.3 billion – came 5.2% lower than the fourth-quarter 2017 sales but beat the Zacks Consensus Estimate of $4.9 billion.
Overall Sales Breakup
Southern Company’s wholesale power sales decreased 5.3%. This was partially offset by the marginal rise in retail electricity demand amid favorable weather conditions and constructive regulatory results.
Consequently, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter was down 0.8% from the same period last year.
Southern Company’s total retail sales improved 0.7%, with residential and commercial sales going up by 3.7% and 0.1%, respectively. However, industrial sales declined 1.4%.
Expenses Summary
The power supplier’s operations and maintenance cost increased 2% to $1.7 billion, while the utility’s total operating expense for the period – at $4.8 billion – was down 3% 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 Corporation (EXC - Free Report) and Duke Energy Corporation (DUK - Free Report) – currently retains a Zacks Rank #2 (Buy).
Apart from Southern Company, one can also look at another player in the space – Ameren Corporation (AEE - Free Report) that also sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren boasts of a good earnings surprise history. It has a 75% track of outperforming estimates over the last four quarters at an average rate of 8.6%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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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