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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Seth Jayson owned shares of the following at the time of publication: Southern. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Southern. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.