Here's What to Expect from Southern’s Next Earnings Report
Atlanta, Georgia-based The Southern Company (SO) engages in the generation, transmission, and distribution of electricity. With a market cap of $101 billion, Southern operates as one of the largest utility companies in the U.S. and serves millions of customers in Mississippi, Alabama, Georgia, Tennessee, Virginia, and other states.
The utilities giant is set to unveil its first-quarter results before the market opens on Thursday, May 1. Ahead of the event, analysts expect Southern to report a non-GAAP profit of $1.17 per share, up 13.6% from $1.03 per share reported in the year-ago quarter. While the company has missed Street’s bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions.
For the full fiscal 2025, SO is expected to report an EPS of $4.29, up 5.9% from $4.05 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to further grow 6.5% year-over-year to $4.57 per share.
SO stock prices have surged 25.1% over the past 52 weeks, significantly outperforming the Utilities Select Sector SPDR Fund’s (XLU) 16.1% gains and the S&P 500 Index’s ($SPX) 3.8% uptick during the same time frame.
Southern’s stock prices rose 1.6% and maintained a positive momentum for the next three trading sessions after the release of its mixed Q4 results on Feb. 20. Driven by a solid growth in non-fuel retail electric revenues, the company’s overall operating revenues increased 4.9% year-over-year to $6.3 billion, surpassing the consensus estimates by approximately 2%. However, Southern’s non-fuel operations and maintenance expenses experienced a significant increase, leading to a contraction in its margins. Its adjusted net income decreased 22.3% year-over-year to $544 million, and its adjusted EPS of $0.50 missed the consensus estimates by 1 cent.
The consensus view on SO stock is cautiously bullish, with a “Moderate Buy” rating overall. Of the 20 analysts covering the stock, opinions include seven “Strong Buys” and 13 “Holds.” As of writing, the stock is trading slightly below its mean price target of $93.91.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.