A Peek at Southern's Future Earnings

Southern SO is set to give its latest quarterly earnings report on Thursday, 2025-05-01. Here's what investors need to know before the announcement.

Analysts estimate that Southern will report an earnings per share (EPS) of $1.17.

Anticipation surrounds Southern's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

The company's EPS missed by $0.01 in the last quarter, leading to a 0.66% increase in the share price on the following day.

Here's a look at Southern's past performance and the resulting price change:

Tracking Southern's Stock Performance

Shares of Southern were trading at $91.45 as of April 29. Over the last 52-week period, shares are up 20.87%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Southern

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Southern.

The consensus rating for Southern is Neutral, based on 5 analyst ratings. With an average one-year price target of $91.4, there's a potential 0.05% downside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of Duke Energy, Constellation Energy and NextEra Energy, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Duke Energy, with an average 1-year price target of $126.78, suggesting a potential 38.63% upside.
• Analysts currently favor an Buy trajectory for Constellation Energy, with an average 1-year price target of $276.6, suggesting a potential 202.46% upside.
• Analysts currently favor an Outperform trajectory for NextEra Energy, with an average 1-year price target of $85.38, suggesting a potential 6.64% downside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Duke Energy, Constellation Energy and NextEra Energy, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Southern is positioned in the middle for Consensus rating. It ranks at the bottom for Revenue Growth. In terms of Gross Profit, Southern is at the top among its peers. For Return on Equity, Southern is at the bottom compared to its peers.

Unveiling the Story Behind Southern

Southern is one of the largest utilities in the US. The company serves 9 million customers with vertically integrated electric utilities in three states and natural gas distribution utilities in four states. It owns 50 gigawatts of rate-regulated generating capacity, primarily for serving customers in Georgia, Alabama, and Mississippi. Subsidiary Southern Power owns 13 gigawatts of natural gas generation and renewable energy across the U.S. and sells the electricity primarily under long-term contracts.

Southern's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Southern displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 4.9%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Southern's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 8.42%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.61%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Southern's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.37%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Southern's debt-to-equity ratio surpasses industry norms, standing at 2.0. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Southern visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.