Southern Company Reports Lower Q2 Revenue, Misses Estimates

Southern Company SO reported a second-quarter FY23 operating revenue decline of 20.3% year-over-year to $5.75 billion, missing the consensus of $6.82 billion.

The company stated that the decrease was primarily due to lower fuel costs and milder weather in 2023.

Adjusted EPS was $0.79, compared to $1.07 in 2Q22, beating the consensus of $0.74.

Operating income declined 22.1% Y/Y to $1.29 billion, and margin contracted by 52 bps to 22.4%

Operating expenses were reduced by 20% Y/Y to $4.46 billion in Q2.     

Total Utility Customers increased 0.9% Y/Y, with Total Traditional Electric +1.2% and Southern Company Gas +0.5%.

Kilowatt-Hour Sales declined by 6.9% Y/Y, with Retail sales down 5.7% and Wholesales sales down 9.9%.

The company held over $7.5 billion in committed credit facilities and available liquidity of over $7.8 billion as of June 30, 2023.

FY23 Outlook reaffirmed: SO expects Adjusted EPS of $3.55-$3.65, versus consensus of $3.60.

For Q3, the company expects EPS of $1.30 Vs. $1.43 estimate.

Price Action: SO shares are trading lower by 1.72% at $69.75 on the last check Thursday.