Free Annual Reports
Southern Third Quarter Earnings
Tickers in this Article »
SO
Southern Company (NYSE:SO) announced its results for the third quarter on November 5, 2012. Southern Company, through its operating companies, provides electric service in four Southeastern states.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Surprising Earnings Results
The Numbers: Though Southern's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported $1.11 per share versus the $1.14 per share estimate and revenues of $5.05 billion versus the $4.74 billion estimate. EPS rose 4.7% while revenue declined 7% from the same period last year. Revenue has fallen in the past four quarters. For the third quarter, the company reported net income of $993 million, up 6.4% from the year-ago quarter.
Management Quote: "After a promising first six months of 2012, the economy has slowed due to uncertainty around the elections, the fiscal cliff and the slowing world economy," said Thomas A. Fanning, Southern Company chairman, president and CEO. "Until these issues are resolved, the near-term outlook for the national economy will be unclear. We continue to believe that the long-term prospects for the Southeast remain strong relative to other portions of the country."
A Look Back: Net income has increased 14.5% 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: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from 38 cents a share to 39 cents over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. For the fiscal year, the average estimate has moved up from $2.64 a share to $2.65 over the last 60 days.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Surprising Earnings Results
The Numbers: Though Southern's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported $1.11 per share versus the $1.14 per share estimate and revenues of $5.05 billion versus the $4.74 billion estimate. EPS rose 4.7% while revenue declined 7% from the same period last year. Revenue has fallen in the past four quarters. For the third quarter, the company reported net income of $993 million, up 6.4% from the year-ago quarter.
Management Quote: "After a promising first six months of 2012, the economy has slowed due to uncertainty around the elections, the fiscal cliff and the slowing world economy," said Thomas A. Fanning, Southern Company chairman, president and CEO. "Until these issues are resolved, the near-term outlook for the national economy will be unclear. We continue to believe that the long-term prospects for the Southeast remain strong relative to other portions of the country."
A Look Back: Net income has increased 14.5% 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: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from 38 cents a share to 39 cents over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. For the fiscal year, the average estimate has moved up from $2.64 a share to $2.65 over the last 60 days.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
