Southern Company Earnings: Streak of Three Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component Southern Company (NYSE:SO) reported its results for the first 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 First Quarter

Results: Net income for Southern Company fell to $368 million (42 cents per share) vs. $422 million (50 cents per share) a year earlier. This is a decline of 12.8% from the year-earlier quarter.

Revenue: Fell 10.3% to $3.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Southern Company fell short of the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $4.1 billion.

Quoting Management: “Despite the effects of an unusually warm winter, we continue to see positive indications of economic growth in our service territory,” said Thomas A. Fanning, Southern Company chairman, president and chief executive officer. “In the meantime, we remain focused on our core business strategy of providing clean, safe, reliable and affordable electricity to customers throughout the Southeast.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by 3 cents.

Revenue has declined for two quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 2% to $3.7 billion from the year-earlier quarter.

Looking Forward: The average estimate for the second quarter remains unchanged at 74 cents a share. For the fiscal year, the average estimate has moved down from $2.69 a share to $2.67 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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