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Power supplier The Southern Company (SO - Free Report) reported third-quarter 2021 earnings per share (excluding certain one-time items) of $1.23, a penny ahead of the Zacks Consensus Estimate as well as the year-ago adjusted profit. The outperformance primarily stemmed from the positive effects of rates, usage and pricing changes.
The utility reported revenues of $6.2 billion. This beat the Zacks Consensus Estimate of $5.9 billion and was 11% higher than third-quarter 2020 sales.
The firm revised its 2021 earnings per share forecast upward to $3.40 per share from the previous guidance range of $3.25-$3.35.
Southern Company The Price, Consensus and EPS Surprise
Per Southern Company’s latest earnings presentation, it continues to progress toward completing the Units 3 and 4 of the Vogtle nuclear project by hitting several milestones over the past few months. The utility’s revised in-service dates for the facilities are now third quarter of 2022 (unit 3) and the second quarter of 2023 (unit 4). At the same time, Southern Company increased the share of its Georgia Power subsidiary in capital costs for the units by $264 million.
Overall Sales Breakup
Southern Company’s wholesale power sales rose 6.3%. There was also a rise in retail electricity demand.
Consequently, there was an upward movement in overall electricity sales and usage. In fact, total electricity sales during the third quarter were up 1.9% from the same period last year.
Southern Company’s total retail sales edged up 0.6%, with industrial and commercial sales rising 4.8% and 2.4%, respectively, though residential sales edged fell 4.6%.
Expenses Summary
The power supplier’s operations and maintenance cost rose 12.4% year-over-year to $1.4 billion, while the utility’s total operating expense for the period — at $4.5 billion — was up 19.3% 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) — carries a Zacks Rank #4 (Sell).
Meanwhile, investors interested in the utility space could look at a better option like NextEra Energy (NEE - Free Report) that carries a Zacks Rank #2 (Buy). The firm has an expected earnings growth rate of 9.52% for the current year.
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Southern (SO) Q3 Earnings & Revenues Top, 2021 View Raised
Power supplier The Southern Company (SO - Free Report) reported third-quarter 2021 earnings per share (excluding certain one-time items) of $1.23, a penny ahead of the Zacks Consensus Estimate as well as the year-ago adjusted profit. The outperformance primarily stemmed from the positive effects of rates, usage and pricing changes.
The utility reported revenues of $6.2 billion. This beat the Zacks Consensus Estimate of $5.9 billion and was 11% higher than third-quarter 2020 sales.
The firm revised its 2021 earnings per share forecast upward to $3.40 per share from the previous guidance range of $3.25-$3.35.
Southern Company The Price, Consensus and EPS Surprise
Southern Company The price-consensus-eps-surprise-chart | Southern Company The Quote
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 hitting several milestones over the past few months. The utility’s revised in-service dates for the facilities are now third quarter of 2022 (unit 3) and the second quarter of 2023 (unit 4). At the same time, Southern Company increased the share of its Georgia Power subsidiary in capital costs for the units by $264 million.
Overall Sales Breakup
Southern Company’s wholesale power sales rose 6.3%. There was also a rise in retail electricity demand.
Consequently, there was an upward movement in overall electricity sales and usage. In fact, total electricity sales during the third quarter were up 1.9% from the same period last year.
Southern Company’s total retail sales edged up 0.6%, with industrial and commercial sales rising 4.8% and 2.4%, respectively, though residential sales edged fell 4.6%.
Expenses Summary
The power supplier’s operations and maintenance cost rose 12.4% year-over-year to $1.4 billion, while the utility’s total operating expense for the period — at $4.5 billion — was up 19.3% 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) — carries a Zacks Rank #4 (Sell).
Meanwhile, investors interested in the utility space could look at a better option like NextEra Energy (NEE - Free Report) that carries a Zacks Rank #2 (Buy). The firm has an expected earnings growth rate of 9.52% for the current year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.