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Can Southern (SO) Sustain Its Beat Run in Q1 Earnings Show?
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The Southern Company (SO - Free Report) is set to release first-quarter results on Apr 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 89 cents per share on revenues of $6 billion.
Let’s delve into the factors that might have influenced the power supplier’s performance in the December quarter. But it’s worth taking a look at Southern Company’s previous-quarter release first.
Highlights of Q4 Earnings & Surprise History
In the last-reported quarter, the Atlanta, GA-based service provider beat the consensus mark on the back of positive effects of rates, usage and pricing changes. Southern Company had reported adjusted earnings per share of 36 cents, a penny ahead of the Zacks Consensus Estimate. The utility’s quarterly revenues of $5.8 billion outperformed the Zacks Consensus Estimate by 6.8%.
Southern Company beat the Zacks Consensus Estimate in each of the last four quarters, delivering an earnings surprise of 6.3%, on average. This is depicted in the chart below:
The Zacks Consensus Estimate for the first-quarter bottom line was revised 19.1% downward in the last seven days. The estimated figure indicates a 9.2% decline year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 0.6% uptick from the year-ago period.
Factors to Consider
Southern Company's seven major regulated utilities serve approximately nine million electric and natural gas customers. Leveraging the demographics of its operating territories, the firm has been successfully expanding its regulated business customer base. As proof of that effort, Southern Company added 55,000 new residential electric customers and 30,000 residential natural gas customers over the last two years. This trend most likely continued in the first quarter of 2022 because of healthy population growth across its electric and gas franchises.
In particular, the firm is expected to have benefited from higher retail electricity sales reflecting economic recovery in the Southeast in the form of demand from industrial buyers. Finally, investment in state-regulated electric/gas franchises and continued trends in hybrid working has most likely buoyed Southern Company’s revenues and cash flows.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Southern Company this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Southern Company has an Earnings ESP of +2.16% and a Zacks Rank #3.
Southern Company is not the only one from the utility space looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
American Water Works Company, Inc. (AWK - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 27.
AWK is valued at around $29.8 billion. The utility topped the Zacks Consensus Estimate by an average of 1.3% in the trailing four quarters. American Water Works has gained around 5.6% in a year.
PG&E Corporation (PCG - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 28.
For 2022, PCG has a projected earnings growth rate of 0.9%. Valued at around $29.9 billion, PG&E has gained around 12.4% in a year.
ONE Gas, Inc. (OGS - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3. The firm is scheduled to release earnings on May 2.
For 2022, OGS has a projected earnings growth rate of 5.7%. Valued at around $4.8 billion, ONE Gas has increased around 14% in a year.
Image: Bigstock
Can Southern (SO) Sustain Its Beat Run in Q1 Earnings Show?
The Southern Company (SO - Free Report) is set to release first-quarter results on Apr 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 89 cents per share on revenues of $6 billion.
Let’s delve into the factors that might have influenced the power supplier’s performance in the December quarter. But it’s worth taking a look at Southern Company’s previous-quarter release first.
Highlights of Q4 Earnings & Surprise History
In the last-reported quarter, the Atlanta, GA-based service provider beat the consensus mark on the back of positive effects of rates, usage and pricing changes. Southern Company had reported adjusted earnings per share of 36 cents, a penny ahead of the Zacks Consensus Estimate. The utility’s quarterly revenues of $5.8 billion outperformed the Zacks Consensus Estimate by 6.8%.
Southern Company beat the Zacks Consensus Estimate in each of the last four quarters, delivering an earnings surprise of 6.3%, on average. This is depicted in the chart below:
Southern Company The Price and EPS Surprise
Southern Company The price-eps-surprise | Southern Company The Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line was revised 19.1% downward in the last seven days. The estimated figure indicates a 9.2% decline year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 0.6% uptick from the year-ago period.
Factors to Consider
Southern Company's seven major regulated utilities serve approximately nine million electric and natural gas customers. Leveraging the demographics of its operating territories, the firm has been successfully expanding its regulated business customer base. As proof of that effort, Southern Company added 55,000 new residential electric customers and 30,000 residential natural gas customers over the last two years. This trend most likely continued in the first quarter of 2022 because of healthy population growth across its electric and gas franchises.
In particular, the firm is expected to have benefited from higher retail electricity sales reflecting economic recovery in the Southeast in the form of demand from industrial buyers. Finally, investment in state-regulated electric/gas franchises and continued trends in hybrid working has most likely buoyed Southern Company’s revenues and cash flows.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Southern Company this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Southern Company has an Earnings ESP of +2.16% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Southern Company is not the only one from the utility space looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
American Water Works Company, Inc. (AWK - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 27.
AWK is valued at around $29.8 billion. The utility topped the Zacks Consensus Estimate by an average of 1.3% in the trailing four quarters. American Water Works has gained around 5.6% in a year.
PG&E Corporation (PCG - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 28.
For 2022, PCG has a projected earnings growth rate of 0.9%. Valued at around $29.9 billion, PG&E has gained around 12.4% in a year.
ONE Gas, Inc. (OGS - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3. The firm is scheduled to release earnings on May 2.
For 2022, OGS has a projected earnings growth rate of 5.7%. Valued at around $4.8 billion, ONE Gas has increased around 14% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.