Southern Co Q2 adjusted EPS beats expectations on customer growth

Overview

• US utility provider's Q2 revenue up 0.1% yr/yr

• Adjusted EPS for Q2 rose and beat analyst expectations

• Company cites investments in utilities, customer growth, and lower income taxes as drivers

Outlook

• Company says strong economic development and power demand continue to drive opportunities in the Southeast

Result Drivers

• UTILITY INVESTMENT - Increased investment in state-regulated utilities contributed to higher adjusted earnings

• CUSTOMER GROWTH - Higher customer usage and growth supported results

• LOWER INCOME TAXES - Decrease in income tax expense boosted quarterly earnings

Company press release: ID:nPn71p7Yka

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 16 "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 $102.00, about 6.2% above its July 29 closing price of $96.05

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• July 30 - American Electric Power Q2 revenue beats estimates, raises FY outlook

• July 29 - Entergy misses quarterly profit estimates as operating costs weigh

• July 30 - Xcel Energy tops second-quarter profit estimates on higher infrastructure investment recovery

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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.)