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Southern's Second Quarter Earnings Report
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Southern Company (NYSE:SO) announced its results for the most recent quarter on July 25, 2012. Southern Company, through its operating companies, provides electric service in four Southeastern states.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Southern's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported 71 cents per share versus the 68 cents per share estimate and revenues of $4.18 billion versus the $4.74 billion estimate. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. Southern reported net income of $639 million during the second quarter. This is 3.1% higher than the year-ago quarter.
Management Quote: Southern Company Chairman, President and CEO Thomas A. Fanning pointed to strong residential customer growth as the latest indicator of a continuing economic recovery in the Southeast. "In the first six months of 2012, our traditional operating companies have already added 20,000 new residential customers - more than we originally projected for the entire year," said Fanning. "And with new economic development successes - representing more than 7,200 new jobs announced in just the last three months - the future continues to look bright for our region."
A Look Back: Net income has increased 16.8% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 63.4% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the third quarter is $1.15 per share, up from $1.11 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved down from $2.66 a share to $2.64 over the last 90 days.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Southern's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported 71 cents per share versus the 68 cents per share estimate and revenues of $4.18 billion versus the $4.74 billion estimate. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. Southern reported net income of $639 million during the second quarter. This is 3.1% higher than the year-ago quarter.
Management Quote: Southern Company Chairman, President and CEO Thomas A. Fanning pointed to strong residential customer growth as the latest indicator of a continuing economic recovery in the Southeast. "In the first six months of 2012, our traditional operating companies have already added 20,000 new residential customers - more than we originally projected for the entire year," said Fanning. "And with new economic development successes - representing more than 7,200 new jobs announced in just the last three months - the future continues to look bright for our region."
A Look Back: Net income has increased 16.8% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 63.4% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the third quarter is $1.15 per share, up from $1.11 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved down from $2.66 a share to $2.64 over the last 90 days.
by
Investopedia Staff
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