## Southern Company Earnings Preview: What to Expect on October 31st
The market is buzzing with anticipation as Southern Company gears up to announce its quarterly earnings on Thursday, October 31st, 2024. Investors are eager to see if the company can deliver on analysts’ expectations and provide positive guidance for the future.
What to Watch For:
Analysts are predicting an earnings per share (EPS) of $1.35 for Southern. The market is hopeful that Southern will not only meet but exceed these estimates, and that they will offer an optimistic outlook for the upcoming quarter. It’s important to note that guidance can have a significant impact on stock prices, making it a key factor for investors to watch.
A Look Back at Past Performance:
Southern has a history of exceeding expectations. In the previous quarter, the company beat EPS estimates by $0.20, resulting in a 1.15% increase in share price the following day. Here’s a breakdown of Southern’s recent earnings performance:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.90 | $1.10 | 1.0% |
| Q1 2024 | $0.90 | $1.03 | 1.0% |
| Q4 2023 | $0.60 | $0.64 | 1.0% |
| Q3 2023 | $1.33 | $1.42 | 0.0% |
Analyst Sentiment:
Understanding the market sentiment and expectations is crucial for investors. Currently, the consensus rating for Southern is Neutral, based on 14 analyst ratings. The average one-year price target is $89.21, implying a potential 0.68% downside.
Comparing Southern to its Peers:
To gain insights into Southern’s relative performance and market positioning, let’s examine its peers: Duke Energy, Constellation Energy, and PG&E.
*
Duke Energy:
Holds an Outperform consensus rating from analysts, with an average one-year price target of $120.0, suggesting a potential 33.6% upside.*
Constellation Energy:
Analysts also have an Outperform consensus for this company, with an average one-year price target of $260.46, indicating a potential 189.98% upside.*
PG&E:
Analysts maintain a Buy status for PG&E, with an average one-year price target of $23.0, pointing to a potential 74.39% downside.Key Financial Metrics:
This table highlights the key financial metrics for Southern and its peers, offering valuable insights into their comparative performance:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Southern | Neutral | 12.44% | $3.48B | 3.74% |
| Duke Energy | Outperform | 9.03% | $3.55B | 1.86% |
| Constellation Energy | Outperform | 0.53% | $1.54B | 7.20% |
| PG&E | Buy | 13.16% | $2.26B | 2.00% |
Key Takeaways:
* Southern ranks at the top in Revenue Growth and Gross Profit among its peers.
* It sits in the middle for Return on Equity.
Southern Company’s Background:
Southern is a leading utility company in the U.S., serving over 9 million customers. It provides vertically integrated electric utilities across three states and natural gas distribution in four states. The company owns 50 gigawatts of rate-regulated generating capacity, mainly serving customers in Georgia, Alabama, and Mississippi.
Southern Power, a subsidiary, boasts 13 gigawatts of natural gas generation and renewable energy across the U.S. It primarily sells electricity under long-term contracts.
Financial Performance Highlights:
*
Market Capitalization:
Southern’s market capitalization surpasses industry averages, reflecting a dominant size relative to peers and suggesting a strong market position.*
Revenue Growth:
Southern has shown positive revenue growth over the past three months, achieving a rate of 12.44% as of June 30th, 2024. This indicates a significant increase in the company’s top-line earnings and outperforms the average growth rate among its peers in the Utilities sector.*
Net Margin:
Southern boasts an impressive net margin that exceeds industry averages, demonstrating strong profitability and effective cost management.*
Return on Equity (ROE):
Southern’s ROE surpasses industry standards, showcasing exceptional financial performance and effective utilization of shareholder equity capital.*
Return on Assets (ROA):
Southern’s outstanding ROA exceeding industry averages reflects its efficient use of assets and strong financial health.*
