Southern Company Earnings Cheat Sheet: Second Straight Quarter of Increasing Profit

S&P 500 (NYSE:SPY) component Southern Company (NYSE:SO) reported its results for the third quarter. Southern Company, through its operating companies, provides electric service in four Southeastern states.

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Southern Company Earnings Cheat Sheet for the Third Quarter

Results: Net income for the electronic equipment company rose to $933 million ($1.07 per share) vs. $833.4 million (97 cents per share) in the same quarter a year earlier. This marks a rise of 11.9% from the year earlier quarter.

Revenue: Rose 2% to $5.43 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SO beat the mean analyst estimate of $1.04 per share. It fell short of the average revenue estimate of $5.72 billion.

Quoting Management: The economic recovery in the Southeast is continuing, but at a slower pace than expected,” said Southern Company Chairman, President and CEO Thomas A. Fanning. “In the meantime, we remain committed to our customer-focused business model of providing exceptional service, industry-leading reliability and prices below the national average.”

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 71 cents versus a mean estimate of net income of 64 cents per share.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 7.5% to $4.52 billion from the year earlier quarter.

The company has now seen net income rise in two straight quarters. In the second quarter, net income rose 17.8% from the year earlier.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 32 cents per share, an increase from 31 cents sixty days ago. For the fiscal year, the average estimate has moved up from $2.52 a share to $2.55 over the last ninety days.

Competitors to Watch: Entergy Corporation (NYSE:ETR), Progress Energy, Inc. (NYSE:PGN), Duke Energy Corporation (NYSE:DUK), SCANA Corporation (NYSE:SCG), NextEra Energy, Inc. (NYSE:NEE), TECO Energy, Inc. (NYSE:TE), PPL Corporation (NYSE:PPL), Dominion Resources, Inc. (NYSE:D), American Electric Power Co., Inc. (NYSE:AEP), and FirstEnergy Corp. (NYSE:FE).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)