Power supplier The Southern Company (SO - Free Report) reported second-quarter 2017 earnings per share (excluding certain one-time items) of 73 cents, beating the Zacks Consensus Estimate of 71 cents. Better-than-expected results were driven by higher revenues mainly from the Southern Company Gas which was acquired in Jul 2016. However the bottom line declined from the year-ago adjusted profit of 75 cents.
The Atlanta-based utility’s quarterly revenues of $5,430 million were 21% higher than the year-ago quarter level of $4,459 million and also beat the Zacks Consensus Estimate of $4,877 million, driven by robust performance of its wholesale unit.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company’s total retail sales fell 1.5%, with both residential and commercial sales declining. Total wholesale sales during the fourth quarter jumped 45.1% from the same period last year. However, industrial sales dipped 0.8% year over year.
Total electricity sales during the first quarter were up 6.5% from the same period last year.
Expenses Break Up
The power supplier’s operations and maintenance cost increased 18.3% to $1,301 million, while the utility’s total operating expense for the period – at $7,024 million – was up 114.5% from the prior-year level. Kemper IGCC plant suffered a loss of $3,012 million owing to escalating costs in the quarter.
Southern Company is one of the largest generators of electricity in the nation along with the likes of Exelon Corporation (EXC - Free Report) , RWE Aktiengesellschaft (RWEOY - Free Report) and Duke Energy Corporation (DUK - Free Report) . Southern Company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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