Southern Co Q1 adjusted EPS beats estimates, revenue up 8%

Overview

• U.S. energy provider's Q1 operating revenue rose 8% yr/yr

• Adjusted EPS for Q1 beat analyst expectations

• Higher utility revenues drove earnings, offset by milder weather and higher interest expense

Outlook

• Southern Co projects accelerated depreciation charges of $335 mln in 2026 and $100 mln in 2027

• Company expects regional growth to drive demand for new infrastructure investments

Result Drivers

• HIGHER UTILITY REVENUES - Co said increased utility revenues supported earnings growth

• MILDER WEATHER - Milder than normal weather at regulated electric utilities partially offset revenue gains

• HIGHER INTEREST EXPENSE - Increased interest expense weighed on Q1 results

Company press release: ID:nPn5rmyZga

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Southern Co is $102.00, about 9.1% above its April 29 closing price of $93.51

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

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