The 10-second takeaway
For the quarter ended March 31 (Q1), Southern whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted.
Gross margins grew, operating margins were steady, and net margins contracted.
Southern tallied revenue of $3.60 billion. The four analysts polled by S&P Capital IQ predicted a top line of $4.03 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $4.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.42. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.45 per share on the same basis. GAAP EPS of $0.43 for Q1 were 12% lower than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.7%, 250 basis points better than the prior-year quarter. Operating margin was 21.3%, about the same as the prior-year quarter. Net margin was 10.2%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.83 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $18.63 billion. The average EPS estimate is $2.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,019 members out of 1,073 rating the stock outperform, and 54 members rating it underperform. Among 275 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 269 give Southern a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southern is hold, with an average price target of $44.88.
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