SO Earnings Prediction
The chart below shows how SO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SO sees a -1.20% change in stock price 10 days leading up to the earnings, and a +0.54% change 10 days following the report. On the earnings day itself, the stock moves by +0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
SO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.27B
4.21%
12.55%
Gross Margin
60.56%
4.76%
5.47%
Operating Margin
32.55%
0.09%
9.67%
Net Margin
21.10%
2.83%
14.80%
EPS
1.39
7.75%
27.52%
No Data Available
SO Earnings Analysis
The Southern Company Corporation (SO.N) Earnings Conference Call
Positive
Adjusted Earnings Increase: 1. Increased Adjusted Earnings: Southern Company reported adjusted earnings of $1.43 per share for Q3 2024, a $0.01 increase from Q3 2023, driven by continued investment in state-regulated utilities and customer growth.
Earnings Per Share Increase: 2. Year-to-Date Earnings Growth: For the nine months ended September 30, 2024, adjusted earnings per share rose to $3.56, compared to $3.01 for the same period in 2023, reflecting strong operational performance.
Customer Acquisition Success: 3. Customer Growth: The company added 12,000 new residential customers in its electric businesses and 7,000 new customers in its natural gas distribution businesses during the quarter, indicating robust demand.
Job Creation and Investment: 4. Economic Development Impact: In Q3 2024, 42 companies established or expanded operations in Southern Company's service territory, generating over 5,000 potential new jobs and approximately $2.6 billion in capital investments.
Data Center Power Demand: 5. Strong Data Center Power Usage: Data center power usage increased by 10% year-over-year, showcasing the growing demand for electricity in this segment and contributing positively to overall sales.
Negative
Storm Recovery Expenses: 1. High Storm Recovery Costs: The estimated cost for restoration and rebuilding after Hurricane Helene is approximately $1.1 billion, significantly impacting financial resources.
Stagnant Electricity Sales: 2. Flat Electricity Sales: Weather-normalized total retail electricity sales were essentially flat compared to Q3 2023, indicating stagnation in customer consumption despite new customer additions.
Operating Expense Challenges: 3. Increased Operating Expenses: Higher interest, depreciation, and other operating expenses offset the slight increase in adjusted earnings per share, highlighting cost pressures on profitability.
Customer Bill Increases: 4. Negative Impact on Customer Bills: The recovery of storm-related costs may lead to increased customer bills, as the commission has flexibility to adjust financing costs associated with the deferred expenses.
Regulatory Approval Delays: 5. Regulatory Uncertainty: The recovery process for storm costs is subject to regulatory approval, which historically has taken from a couple of years to as many as six years, creating uncertainty in cash flow recovery.
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SO Earning Call Sentiment
The Southern Company (SO) Q3 2024 Earnings Call Transcript
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SO.N
3.68%Positive
The earnings call presents a mixed picture. Financial performance shows stable EPS growth, but weather-related challenges and infrastructure damage from Hurricane Helene pose risks. The Q&A reveals deferred storm costs and uncertainties in cost recovery, though customer and economic growth remain strong. Lack of a shareholder return plan and competitive pressures are concerns. Despite positive long-term projections, immediate uncertainties and deferred costs lead to a neutral outlook.