The 10-second takeaway
For the quarter ended June 30 (Q2), Southern whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew slightly.
Margins increased across the board.
Southern notched revenue of $4.18 billion. The five analysts polled by S&P Capital IQ expected net sales of $4.76 billion on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $4.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.69. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.68 per share. GAAP EPS of $0.72 for Q2 were 2.9% higher than the prior-year quarter's $0.70 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 43.0%, 330 basis points better than the prior-year quarter. Operating margin was 26.9%, 180 basis points better than the prior-year quarter. Net margin was 14.9%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.89 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $18.31 billion. The average EPS estimate is $2.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,029 members rating the stock outperform, and 58 members rating it underperform. Among 320 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 313 give Southern a green thumbs-up, and seven 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 $45.88.
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