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Power supplier The Southern Company (SO - Free Report) reported fourth-quarter 2024 earnings per share (excluding certain one-time items) of 50 cents, underperforming the Zacks Consensus Estimate by a penny and deteriorating from the year-ago adjusted profit of 64 cents. The disappointing numbers reflect elevated expenses.
The utility reported revenues of $6.3 billion. The top line came in 4.9% higher than fourth-quarter 2023 sales and beat the Zacks Consensus Estimate of $6.2 billion due to a gain in overall electricity sales and favorable weather conditions.
The firm guided earnings per share between $4.20 and $4.30 for this year. Further, Southern Company management stuck to its long-term EPS growth rate projection of 5-7% based on the 2024 adjusted EPS projection.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company’s wholesale power sales rose 2.5%, while there was a gain in retail electricity demand, too.
Overall, there was an improvement in electricity sales and usage. In fact, total electricity sales during the fourth quarter increased 2.7% from the same period last year.
Southern Company’s total retail sales moved up 2.8%, with residential, commercial and industrial sales increasing 1.9%, 4.4% and 2%, respectively.
Expenses Summary
The power supplier’s operations and maintenance (O&M) cost rose 14.6% year over year to $2 billion. Moreover, the utility’s total operating expense for the period — at $5.3 billion — increased 9.2% from the prior-year level and came in above our estimate of $5.1 billion.
SO’s Zacks Rank & Stock Picks
Southern Company carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the utilities space could look at better options like NiSource Inc. (NI - Free Report) , Atmos Energy Corporation (ATO - Free Report) and Entergy Corporation (ETR - Free Report) . Each of the firms carries a Zacks Rank #2 (Buy).
NiSource: NiSource is valued at around $18.8 billion. For 2025, NI has a projected earnings growth rate of 9.1%.
NiSource delivered a four-quarter average earnings surprise of 23%. Headquartered in Merrillville, IN, NI shares have gained 55.8% in a year.
Atmos Energy Corporation: Atmos Energy is valued at around $23.8 billion. For fiscal 2025, ATO has a projected earnings growth rate of 5.1%.
Atmos Energy delivered a four-quarter average earnings surprise of 3.9%. Headquartered in Dallas, TX, ATO shares have increased 34.2% in a year.
Entergy Corporation: Entergy is valued at around $36.6 billion. For 2025, ETR has a projected earnings growth rate of 6.3%.
Entergy’s expected EPS growth rate for three to five years is currently 9.5%, which compares favorably with the industry's growth rate of 7.7%. Headquartered in New Orleans, LA, ETR shares have gained 70.2% in a year.
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Southern (SO) Q4 Earnings Miss, Electricity Sales Increase
Power supplier The Southern Company (SO - Free Report) reported fourth-quarter 2024 earnings per share (excluding certain one-time items) of 50 cents, underperforming the Zacks Consensus Estimate by a penny and deteriorating from the year-ago adjusted profit of 64 cents. The disappointing numbers reflect elevated expenses.
The utility reported revenues of $6.3 billion. The top line came in 4.9% higher than fourth-quarter 2023 sales and beat the Zacks Consensus Estimate of $6.2 billion due to a gain in overall electricity sales and favorable weather conditions.
The firm guided earnings per share between $4.20 and $4.30 for this year. Further, Southern Company management stuck to its long-term EPS growth rate projection of 5-7% based on the 2024 adjusted EPS projection.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) Quote
Overall Sales Breakup
Southern Company’s wholesale power sales rose 2.5%, while there was a gain in retail electricity demand, too.
Overall, there was an improvement in electricity sales and usage. In fact, total electricity sales during the fourth quarter increased 2.7% from the same period last year.
Southern Company’s total retail sales moved up 2.8%, with residential, commercial and industrial sales increasing 1.9%, 4.4% and 2%, respectively.
Expenses Summary
The power supplier’s operations and maintenance (O&M) cost rose 14.6% year over year to $2 billion. Moreover, the utility’s total operating expense for the period — at $5.3 billion — increased 9.2% from the prior-year level and came in above our estimate of $5.1 billion.
SO’s Zacks Rank & Stock Picks
Southern Company carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the utilities space could look at better options like NiSource Inc. (NI - Free Report) , Atmos Energy Corporation (ATO - Free Report) and Entergy Corporation (ETR - Free Report) . Each of the firms carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NiSource: NiSource is valued at around $18.8 billion. For 2025, NI has a projected earnings growth rate of 9.1%.
NiSource delivered a four-quarter average earnings surprise of 23%. Headquartered in Merrillville, IN, NI shares have gained 55.8% in a year.
Atmos Energy Corporation: Atmos Energy is valued at around $23.8 billion. For fiscal 2025, ATO has a projected earnings growth rate of 5.1%.
Atmos Energy delivered a four-quarter average earnings surprise of 3.9%. Headquartered in Dallas, TX, ATO shares have increased 34.2% in a year.
Entergy Corporation: Entergy is valued at around $36.6 billion. For 2025, ETR has a projected earnings growth rate of 6.3%.
Entergy’s expected EPS growth rate for three to five years is currently 9.5%, which compares favorably with the industry's growth rate of 7.7%. Headquartered in New Orleans, LA, ETR shares have gained 70.2% in a year.