Yahoo Finance Southern (SO) Beats on Q1 Earnings, Retains Vogtle Timelines
Power supplier The Southern Company SO reported first-quarter 2023 earnings per share (excluding certain one-time items) of 79 cents, beating the Zacks Consensus Estimate of 71 cents. The outperformance reflects the positive effects of rates, usage and pricing changes.
However, SO’s bottom line was lower than the year-earlier quarter’s adjusted profit of 97 cents per share, affected by tepid demand on the back of unfavorable weather.
The utility reported revenues of $6.5 billion. The top line missed the Zacks Consensus Estimate of $6.7 billion and was 2.5% lower than first-quarter 2022 sales.
The firm guided earnings per share of $3.55-$3.65 for this year and 75 cents for the June quarter.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) Quote
Vogtle Updates
Per latest earnings presentation, Southern Company expects no further delays in completing Units 3 and 4 of the Vogtle nuclear project. The utility’s in-service dates for the facilities are still May or June 2023 (unit 3) and late Q4’23-Q1’24 (unit 4). At the same time, Southern Company kept the share of its Georgia Power subsidiary in capital costs for the units unchanged.
Overall Sales Breakup
Southern Company’s wholesale power sales were down 1.7%, which was further compounded by a drop in retail electricity demand.
Overall, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the first quarter declined 4.1% from the same period last year.
Southern Company’s total retail sales moved down 5%, with residential, commercial and industrial sales decreasing 12.2%, 0.9% and 1.6%, respectively.
Expenses Summary
The power supplier’s operations and maintenance cost fell 2.2% year over year to $1.5 billion, while the utility’s total operating expense for the period — at $5.3 billion — was essentially unchanged from the prior-year level.
Zacks Rank & Stock Picks
Southern Company carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the utility space could look at better options like NiSource Inc. NI, Portland General Electric Company POR and MYR Group Inc. MYRG. 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 $11.7 billion. For 2023, NI has a projected earnings growth rate of 6.8%.
NiSource delivered a four-quarter average earnings surprise of 0.2%. Headquartered in Merrillville, IN, NI shares have lost 6.1% in a year.
Portland General Electric Company: Portland General Electric is valued at around $4.5 billion. For 2023, POR has a projected sales growth rate of 6.8%.
Portland General Electric delivered a four-quarter average earnings surprise of 4.7%. Headquartered in Portland, OR, POR shares have lost 2.4% in a year.
MYR Group Inc. MYR Group is valued at around $2 billion. For 2023, MYRG has a projected earnings growth rate of 14.1%.
MYR Group delivered a four-quarter average earnings surprise of 16.4%. Headquartered in Thornton, CO, MYRG shares have gained 38.1% in a year.
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Southern Company (The) (SO) : Free Stock Analysis Report
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