Atlanta, Georgia-based The Southern Company (SO) generates, transmits, and distributes electricity. Valued at $88.70 billion by market cap, the company also offers wireless telecommunications services, provides businesses with two-way radio, telephone, paging, and internet access services, and wholesales fiber optic solutions. The leading energy company is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect SO to report a profit of $0.90 per share on a diluted basis, up 13.9% from $0.79 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect SO to report EPS of $4, up 9.6% from $3.65 in fiscal 2023.
SO stock has outperformed the S&P 500’s ($SPX) 17.5% gains on a YTD basis, with shares up 17.8% during this period. Similarly, it outshined the S&P 500 Utilities Sector SPDR’s (XLU) 11.7% gains over the same time frame.
SO’s overall performance can be attributed to its robust Q1 results and the start of the commercial operations of two new nuclear reactors in Georgia. On May 2, SO reported its Q1 results. Its EPS of $1.03 surpassed Wall Street expectations of $0.90. The company posted revenue and net income of $6.65 billion and $1.13 billion, respectively. Plant Vogtle’s Unit 4 has begun commercial operations, joining Unit 3, which started last summer.
These two nuclear reactors are the first to be built in the United States in decades and can power 500,000 homes and businesses. SO is the parent company of Georgia Power, and it believes that Vogtle will help the utility realize its goal of becoming carbon neutral by 2050. SO shares closed up more than 1% on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on SO stock is bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, eight give a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for SO is $76.64, indicating a potential downside of 5.5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
