Utility Southern Co's Q3 adjusted EPS beats estimates, helped by warmer weather
Overview
US utility's Q3 operating revenue rose 13% yr/yr to $8.8 bln
Adjusted EPS for Q3 beat analyst expectations
Results driven by warmer weather, customer growth, and higher large customer revenue
Outlook
Company expects continued strong electricity demand growth in the Southeast region
Company projects $135 mln in pre-tax accelerated depreciation and decommissioning costs in 2027
Company sees risks from capital needs and revenue recovery as electricity demand rises
Result Drivers
LARGE CUSTOMER REVENUE - Co said higher revenue from large commercial and industrial customers contributed to results
SOUTHERN POWER EARNINGS - Higher earnings from Southern Power helped drive results
HIGHER OPERATING EXPENSES - Results were partially offset by higher non-fuel operating expenses and taxes other than income taxes
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Operating revenue | $8.80 bln | ||
Q3 Adjusted EPS | Beat | $1.94 | $1.71 (15 Analysts) |
Q3 Adjusted Net Income | $2.20 bln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Southern Co is $96.50, about 3.6% above its November 4 closing price of $93.12
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago
Reuters Recommended Reads
Nov 5 - Evergy Q3 adjusted EPS beats estimates on warmer weather; raises 2026 outlook
Nov 5 - Duke Energy Q3 adjusted EPS beats estimates
Nov 5 - DTE Energy to sell non-utility DTE Vantage business; Q3 operating EPS rises
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)