Southern Company Set to Announce Q4 Results Amid Mixed Stock Performance
Atlanta’s Southern Company (SO), a leading utility provider, gears up for its fourth-quarter earnings report this Thursday, February 20. With a market capitalization of $90.4 billion, the company serves over 9 million customers across the southeastern United States, including Mississippi, Alabama, Georgia, Tennessee, and Virginia.
Analysts Anticipate Lower Earnings per Share
As anticipation builds, analysts project Southern will report a non-GAAP profit of $0.54 per share, marking a 15.6% decrease from last year’s $0.64 per share. Despite this expected drop, Southern has shown strong performance recently, having exceeded earnings per share (EPS) estimates in each of the last four quarters. In its most recent report, the company’s adjusted EPS rose slightly to $1.43, beating consensus predictions by 7.5%.
Future Earnings Growth on the Horizon
Looking ahead, Southern forecasts an adjusted EPS of $4.04 for the full fiscal year 2024, a 10.7% increase from $3.65 in fiscal 2023. Projections for fiscal 2025 indicate further growth, with earnings expected to rise 6.9% year-over-year to reach $4.32 per share.
Stock Performance Compared to Peers
Over the past year, Southern’s stock has seen a 19.5% increase. However, this growth has not kept pace with the Utilities Select Sector SPDR Fund (XLU), which rose 29.5%, or the S&P 500 Index ($SPX) that surged by 25.8% during the same period.
Positive Market Reaction to Q3 Results
Following a strong report for the third quarter on October 31, Southern Company’s stock climbed 1.9%. The utility reported a substantial 4.2% increase in revenues year-over-year to $7.3 billion, surpassing analysts’ expectations by 2.1%. This revenue growth helped boost the operating income by 7.2% from the previous year, reaching $1.5 billion despite rising costs and expenses.
Analysts Maintain a ‘Moderate Buy’ Rating
Regarding stock recommendations, the consensus on Southern Company is moderately bullish. Out of 21 analysts covering the stock, eight suggest a “Strong Buy,” one favors “Moderate Buy,” 11 advise “Hold,” and one recommends a “Strong Sell.” The average price target of $91.64 implies an 11.4% upside potential based on current levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
