The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Southern whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Margins expanded across the board.
Southern logged revenue of $5.05 billion. The five analysts polled by S&P Capital IQ hoped for sales of $5.97 billion on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $5.43 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 $1.11. The 15 earnings estimates compiled by S&P Capital IQ anticipated $1.13 per share. GAAP EPS of $1.12 for Q3 were 5.7% higher than the prior-year quarter's $1.06 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 48.0%, 520 basis points better than the prior-year quarter. Operating margin was 34.5%, 410 basis points better than the prior-year quarter. Net margin was 19.7%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.07 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $18.03 billion. The average EPS estimate is $2.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,022 members out of 1,078 rating the stock outperform, and 56 members rating it underperform. Among 288 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 278 give Southern a green thumbs-up, and 10 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 $47.00.
Can your retirement portfolio provide you with enough income to last? You'll need more than Southern. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Southern to My Watchlist.