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Southern Co. (SO) Down 0.3% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Southern Co. (SO - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Southern Co. due for a breakout? 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.
Southern Company Q4 Earnings and Sales Beat Estimates
Power supplier Southern Company reported fourth-quarter 2020 earnings per share (excluding certain one-time items) of 47 cents, beating the Zacks Consensus Estimate of 43 cents and above the year-ago adjusted profit of 27 cents. The outperformance primarily stemmed from successful cost containment measures as well as positive effects of rates, usage and pricing changes.
The utility reported revenues of $5.1 billion, which beat the Zacks Consensus Estimate by a marginal 0.9% and was 4.1% higher than fourth-quarter 2019 sales.
The firm is guiding for earnings per share of $3.25-$3.35 this year and 84 cents for the March quarter. Further, Southern Company management raised its long-term EPS growth rate projection to 5-7% (from 4-6% before) based on 2024 adjusted EPS of $4-$4.30.
Vogtle Updates
Per Southern Company’s latest earnings presentation, it continues to progress toward completing the Units 3 and 4 of the Vogtle nuclear project by the November 2021 and November 2022 regulatory approved in-service dates. At the same time, the firm increased the share of its Georgia Power subsidiary in capital costs for the units by $176 million to $8.7 billion, primarily due to the impacts of the pandemic.
Overall Sales Breakup
Southern Company’s wholesale power sales decreased 3.7%. There was also a fall in retail electricity demand.
Consequently, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter were down 1.9% from the same period last year.
Southern Company’s total retail sales were down 1.3%, with commercial and industrial sales going down by 4.4% and 1.4%, respectively. But on a bullish note, residential sales rose 2.3%.
Expenses Summary
The power supplier’s operations and maintenance cost fell 5.7% year-over-year to $1.6 billion but the utility’s total operating expense for the period — at $4.4 billion — was up 3.9% from the prior-year level.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Southern Co. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.
Outlook
Southern Co. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Southern Co. (SO) Down 0.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Southern Co. (SO - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Southern Co. due for a breakout? 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.
Southern Company Q4 Earnings and Sales Beat Estimates
Power supplier Southern Company reported fourth-quarter 2020 earnings per share (excluding certain one-time items) of 47 cents, beating the Zacks Consensus Estimate of 43 cents and above the year-ago adjusted profit of 27 cents. The outperformance primarily stemmed from successful cost containment measures as well as positive effects of rates, usage and pricing changes.
The utility reported revenues of $5.1 billion, which beat the Zacks Consensus Estimate by a marginal 0.9% and was 4.1% higher than fourth-quarter 2019 sales.
The firm is guiding for earnings per share of $3.25-$3.35 this year and 84 cents for the March quarter. Further, Southern Company management raised its long-term EPS growth rate projection to 5-7% (from 4-6% before) based on 2024 adjusted EPS of $4-$4.30.
Vogtle Updates
Per Southern Company’s latest earnings presentation, it continues to progress toward completing the Units 3 and 4 of the Vogtle nuclear project by the November 2021 and November 2022 regulatory approved in-service dates. At the same time, the firm increased the share of its Georgia Power subsidiary in capital costs for the units by $176 million to $8.7 billion, primarily due to the impacts of the pandemic.
Overall Sales Breakup
Southern Company’s wholesale power sales decreased 3.7%. There was also a fall in retail electricity demand.
Consequently, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the fourth quarter were down 1.9% from the same period last year.
Southern Company’s total retail sales were down 1.3%, with commercial and industrial sales going down by 4.4% and 1.4%, respectively. But on a bullish note, residential sales rose 2.3%.
Expenses Summary
The power supplier’s operations and maintenance cost fell 5.7% year-over-year to $1.6 billion but the utility’s total operating expense for the period — at $4.4 billion — was up 3.9% from the prior-year level.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Southern Co. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.
Outlook
Southern Co. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.