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Utility Southern Co's Q3 adjusted EPS beats estimates, helped by warmer weather

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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