S&P 500 (NYSE:SPY) component Southern Company (NYSE:SO) reported net income above Wall Street’s expectations for the second quarter. Southern Company through its operating companies, provides electric service in four Southeastern states.
Southern Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for the electronic equipment company rose to $619 million (71 cents per share) vs. $526.4 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 17.6% from the year earlier quarter.
Revenue: Rose 7.5% to $4.52 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: SO beat the mean analyst estimate of 64 cents per share. Analysts were expecting revenue of $4.46 billion.
Quoting Management: “The industrial sector continues to lead the economic recovery in the Southeast,” said Southern Company Chairman, President and CEO Thomas A. Fanning. “We believe our region is well positioned for future expansion, and we are already seeing new business development in several parts of our service territory. Southern Company will continue to support this expansion by focusing on our core business strategy of exceptional customer satisfaction, industry-leading reliability and prices below the national average.”
Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 14.2% while the figure dropped in the fourth quarter of the last fiscal year.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 50 cents versus a mean estimate of net income of 51 cents per share.
Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 3.5% to $4.01 billion in the first quarter from the year earlier.
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).
(Source: Xignite Financials)