Southern (SO) Q4 Earnings Miss, Electricity Sales Increase

Power supplier The Southern Company SO reported fourth-quarter 2024 earnings per share (excluding certain one-time items) of 50 cents, underperforming the Zacks Consensus Estimate by a penny and deteriorating from the year-ago adjusted profit of 64 cents. The disappointing numbers reflect elevated expenses. The utility reported revenues of $6.3 billion. The top line came in 4.9% higher than fourth-quarter 2023 sales and beat the Zacks Consensus Estimate of $6.2 billion due to a gain in overall electricity sales and favorable weather conditions.The firm guided earnings per share between $4.20 and $4.30 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) QuoteOverall Sales BreakupSouthern Company’s wholesale power sales rose 2.5%, while there was a gain in retail electricity demand, too.Overall, there was an improvement in electricity sales and usage. In fact, total electricity sales during the fourth quarter increased 2.7% from the same period last year.Southern Company’s total retail sales moved up 2.8%, with residential, commercial and industrial sales increasing 1.9%, 4.4% and 2%, respectively.Expenses SummaryThe power supplier’s operations and maintenance (O&M) cost rose 14.6% year over year to $2 billion. Moreover, the utility’s total operating expense for the period — at $5.3 billion — increased 9.2% from the prior-year level and came in above our estimate of $5.1 billion.SO’s Zacks Rank & Stock PicksSouthern 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 Entergy Corporation ETR. 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 $18.8 billion. For 2025, NI has a projected earnings growth rate of 9.1%.NiSource delivered a four-quarter average earnings surprise of 23%. Headquartered in Merrillville, IN, NI shares have gained 55.8% in a year.Atmos Energy Corporation: Atmos Energy is valued at around $23.8 billion. For fiscal 2025, ATO has a projected earnings growth rate of 5.1%.Atmos Energy delivered a four-quarter average earnings surprise of 3.9%. Headquartered in Dallas, TX, ATO shares have increased 34.2% in a year.Entergy Corporation: Entergy is valued at around $36.6 billion. For 2025, ETR has a projected earnings growth rate of 6.3%.Entergy’s expected EPS growth rate for three to five years is currently 9.5%, which compares favorably with the industry's growth rate of 7.7%. Headquartered in New Orleans, LA, ETR shares have gained 70.2% in a year.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Company (The) (SO): Free Stock Analysis Report NiSource, Inc (NI): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks