Southern Earnings: Here’s Details on the Mixed Bag

Southern Company (NYSE:SO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Southern Company Earnings Cheat Sheet

Results: Net income increased 44.04% to $399 million (44 cents per diluted share) in the quarter versus a net gain of $277 million in the year-earlier quarter.

Revenue: Rose 0.11% to $3.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Southern Company reported adjusted net income of 44 cents per share. By that measure, the company beat the mean analyst estimate of $0.4. It missed the average revenue estimate of $4.53 billion.

Quoting Management: Thomas A. Fanning, Southern Company chairman, president and chief executive officer said economic prospects in the Southeast remain bright, but that expansion and hiring decisions continue to be delayed pending longer-term congressional action on fiscal issues.

Key Stats:

Revenue decreased 26.72% from $5.05 billion in the previous quarter. Net income decreased 59.82% from $993 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.47. For the current year, the average estimate has moved down from a profit of $2.65 to a profit of $2.62 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)