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Southern Company (SO) Q1 Earnings Top, Vogtle Timeline Intact
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Power supplier Southern Company (SO - Free Report) reported first-quarter 2020 earnings per share (excluding certain one-time items) of 78 cents, surpassing the Zacks Consensus Estimate of 72 cents and the year-ago profit of 70 cents. The robust performance primarily stemmed from positive effects of rates, usage and pricing changes.
However, the Atlanta-based utility’s quarterly revenue – at $5 billion – missed the Zacks Consensus Estimate of $5.6 billion and was 7.3% lower than first-quarter 2019 sales on account of adverse weather impact.
The company, which gave an EPS guidance of 65 cents for the second quarter, further updated that its long-term outlook will not be materially affected by the coronavirus outbreak. While the pandemic is set to reduce the demand for commercial and industrial demand due to widespread lockdowns and social distancing, residential consumption will see an uptick in consumption.
Southern Company (The) Price, Consensus and EPS Surprise
Per Southern Company’s latest earnings presentation, it continues to progress toward completing the Units 3 and 4 of the Vogtle nuclear project by the November 2021 and November 2022 regulatory approved in-service dates. The utility also expects no change in the project’s total estimated costs.
Overall Sales Breakup
Southern Company’s wholesale power sales decreased 5.4%. There was also a slight fall in retail electricity demand.
Consequently, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the first quarter were down 2% from the same period last year.
Southern Company’s total retail sales edged down 0.9%, with residential and commercial sales going down by 0.3% and 0.4%, respectively. Moreover, industrial sales declined 1.8%.
Expenses Summary
The power supplier’s operations and maintenance cost was down 1.4% to $1.3 billion, but the utility’s total operating expense for the period – at $3.6 billion – more than doubled from the prior-year level. The surge was primarily on account of the absence of gain on asset sales.
Zacks Rank & Stock Picks
Southern Company – one of the largest generators of electricity in the nation along with the likes of Exelon Corporation (EXC - Free Report) and Duke Energy Corporation (DUK - Free Report) – currently retains a Zacks Rank #3 (Hold).
A better-ranked player in the utility space is Algonquin Power & Utilities Corp. (AQN - Free Report) , carrying a Zacks Rank #2 (Buy).
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Southern Company (SO) Q1 Earnings Top, Vogtle Timeline Intact
Power supplier Southern Company (SO - Free Report) reported first-quarter 2020 earnings per share (excluding certain one-time items) of 78 cents, surpassing the Zacks Consensus Estimate of 72 cents and the year-ago profit of 70 cents. The robust performance primarily stemmed from positive effects of rates, usage and pricing changes.
However, the Atlanta-based utility’s quarterly revenue – at $5 billion – missed the Zacks Consensus Estimate of $5.6 billion and was 7.3% lower than first-quarter 2019 sales on account of adverse weather impact.
The company, which gave an EPS guidance of 65 cents for the second quarter, further updated that its long-term outlook will not be materially affected by the coronavirus outbreak. While the pandemic is set to reduce the demand for commercial and industrial demand due to widespread lockdowns and social distancing, residential consumption will see an uptick in consumption.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) Quote
Vogtle Updates
Per Southern Company’s latest earnings presentation, it continues to progress toward completing the Units 3 and 4 of the Vogtle nuclear project by the November 2021 and November 2022 regulatory approved in-service dates. The utility also expects no change in the project’s total estimated costs.
Overall Sales Breakup
Southern Company’s wholesale power sales decreased 5.4%. There was also a slight fall in retail electricity demand.
Consequently, there was a downward movement in overall electricity sales and usage. In fact, total electricity sales during the first quarter were down 2% from the same period last year.
Southern Company’s total retail sales edged down 0.9%, with residential and commercial sales going down by 0.3% and 0.4%, respectively. Moreover, industrial sales declined 1.8%.
Expenses Summary
The power supplier’s operations and maintenance cost was down 1.4% to $1.3 billion, but the utility’s total operating expense for the period – at $3.6 billion – more than doubled from the prior-year level. The surge was primarily on account of the absence of gain on asset sales.
Zacks Rank & Stock Picks
Southern Company – one of the largest generators of electricity in the nation along with the likes of Exelon Corporation (EXC - Free Report) and Duke Energy Corporation (DUK - Free Report) – currently retains a Zacks Rank #3 (Hold).
A better-ranked player in the utility space is Algonquin Power & Utilities Corp. (AQN - Free Report) , carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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