Power supplier The Southern Company SO reported third-quarter 2024 earnings per share (excluding certain one-time items) of $1.43, well ahead of the Zacks Consensus Estimate of $1.33 and a penny higher than the year-ago adjusted profit. The outperformance reflects a gain in overall electricity sales to go with the positive effects of rates, usage and pricing changes.
The utility reported revenues of $7.3 billion. The top line came in 4.2% higher than third-quarter 2023 sales and beat the Zacks Consensus Estimate of $7.1 billion.
The firm guided earnings per share of $4.05 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 jumped 8.2%, though there was a drop in retail electricity demand.
Overall, there was an improvement in electricity sales and usage. In fact, total electricity sales during the third quarter rose 1.1% from the same period last year.
Southern Company’s total retail sales moved down 1.1%, with residential and commercial sales decreasing 3% and 0.4%, respectively. Meanwhile, industrial sales improved 0.4% from the year-ago period.
Expenses Summary
The power supplier’s operations and maintenance (O&M) cost rose 16.7% year over year to $1.7 billion. Moreover, the utility’s total operating expense for the period — at $4.9 billion — edged up 0.7% from the prior-year level and came above our estimate of $4.8 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, Atmos Energy Corporation ATO and Duke Energy Corporation DUK. 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 $15.4 billion. For 2024, NI has a projected earnings growth rate of 8.1%.
NiSource delivered a four-quarter average earnings surprise of 20.6%. Headquartered in Merrillville, IN, NI shares have gained 38.3% in a year.
Atmos Energy Corporation: Atmos Energy is valued at around $21.7 billion. For fiscal 2024, ATO has a projected earnings growth rate of 11.3%.
Atmos Energy delivered a four-quarter average earnings surprise of 4.8%. Headquartered in Dallas, TX, ATO shares have increased 28.5% in a year.
Duke Energy Corporation: Duke Energy is valued at around $88 billion. For 2024, DUK has a projected earnings growth rate of 7.6%.
Duke Energy delivered a four-quarter average earnings surprise of 4.9%. Headquartered in Charlotte, NC, DUK shares have gained 27.3% in a year.
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Today, See These 5 Potential Home Runs >>Southern Company (The) (SO) : Free Stock Analysis Report
NiSource, Inc (NI) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
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