A Look Ahead: Southern's Earnings Forecast

Southern SO is gearing up to announce its quarterly earnings on Thursday, 2024-10-31. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Southern will report an earnings per share (EPS) of $1.35.

The market awaits Southern's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

The company's EPS beat by $0.20 in the last quarter, leading to a 1.15% increase in the share price on the following day.

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

Analysts' Perspectives on Southern

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Southern.

The consensus rating for Southern is Neutral, derived from 14 analyst ratings. An average one-year price target of $89.21 implies a potential 0.68% downside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Duke Energy, Constellation Energy and PG&E, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Duke Energy received a Outperform consensus from analysts, with an average 1-year price target of $120.0, implying a potential 33.6% upside.
• The consensus outlook from analysts is an Outperform trajectory for Constellation Energy, with an average 1-year price target of $260.46, indicating a potential 189.98% upside.
• PG&E is maintaining an Buy status according to analysts, with an average 1-year price target of $23.0, indicating a potential 74.39% downside.

Peer Analysis Summary

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

Key Takeaway:

Southern ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Southern's Background

Southern is one of the largest utilities in the U.S. 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 Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, Southern showcased positive performance, achieving a revenue growth rate of 12.44% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Southern's net margin is impressive, surpassing industry averages. With a net margin of 18.61%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Southern's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.74% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Southern's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.85%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.02, caution is advised due to increased financial risk.

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.