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Earnings Review and Free Research Report: Southern Co.’s Q2 Top-line Surged 21.8%; Beat Estimates

Research Desk Line-up: Companhia Paranaense de Energia Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Southern Co. (NYSE: SO), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SO, following the Company's release of its financial results on August 02, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Atlanta, Georgia-based Company's total operating revenues surged 21.8% y-o-y, outshining market forecasts. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Electric Utilities industry. Pro-TD has currently selected Companhia Paranaense de Energia - COPEL (NYSE: ELP) for due-diligence and potential coverage as the Company announced on August 11, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Companhia Paranaense de Energia when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SO; also brushing on ELP. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

In the quarter ended on June 30, 2017, Southern Co. reported total operating revenues of $5.43 billion, which came in above the $4.46 billion recorded at the end of Q2 FY16. Total operating revenues for the reported quarter outperformed market expectations of $4.88 billion. Meanwhile, the Company reported operating loss of $1.59 billion in Q2 FY17 compared to operating income of $1.19 billion in Q2 FY16.

The electric utility Company reported net income loss to Southern Co. of $1.38 billion, or $1.37 per share, in Q2 FY17 versus net income attributable to Southern Co. $623 million, or $0.66 per share, in Q2 FY16. Furthermore, the Company's non-GAAP net income attributable to Southern Co. came in at $728 million, or $0.73 per share, for Q2 FY17 compared to $704 million, or $0.75 per share, in Q2 FY16. Market analysts had forecasted non-GAAP net income of $0.71 per share for Q2 FY17.

Operating Metrics

Southern Co.'s total retail electric sales fell 1.5% to 38,849 million kilowatt-hours y-o-y during the reported quarter with industrial and commercial sales electric sales both falling by 0.8% y-o-y. Residential retail electric sales also were down by 2.9% to 12,087 million kilowatt-hours y-o-y in Q2 FY17. In Q2 FY17, total wholesale electric sales surged 45.1% to 11,816 million kilowatt-hours y-o-y. Furthermore, total electricity sales jumped 6.5% to 50,665 million kilowatt-hours y-o-y in Q2 FY17.

Southern Co.'s Segment Performance

During Q2 FY17, Alabama Power segment's operating revenues came in at $1.48 billion, up 2.8% from $1.44 billion in Q2 FY16. The segment's net income grew 8.0% to $230 million in Q2 FY17 from $213 million in Q2 FY16.

The Georgia Power segment recorded operating revenues came in flat at $2.05 billion for the reported quarter. The segment's contribution to the Company's GAAP net income was $347 million for Q2 FY17 compared to $349 million in the prior-year's comparable quarter.

The Gulf Power segment contributed $357 million to total revenue in Q2 FY17, compared to $365 million in the year ago same period. The segment's net income was $35 million for the reported quarter compared to $34 million in the year ago corresponding period.

In Q2 FY17, Mississippi Power segment's revenues grew 9.4% to $303 million y-o-y. Meanwhile, the segment reported net loss of $2.05 billion in Q2 FY17 compared to a net income of $2 million in the prior year's comparable quarter.

Southern Power segment's revenues surged 41.8% to $529 million in Q2 FY17 from $373 million in Q2 FY16. However, the segment's net income fell 7.9% to $82 million y-o-y in Q2 FY17.

Gas segment reported net income of $49 million on segment's revenues of $716 million in Q2 FY17.

Cash Flow & Balance Sheet

During first six months of FY17, Southern Co.'s net cash provided by operating activities were $2.74 billion, rising from $2.14 billion in H1 FY16. At the close of books in the reported quarter, Southern Co. had $1.43 billion in cash and cash equivalents compared to $1.98 billion at the close of books as on December 31, 2016. Additionally, the Company reported long-term debts amounting to $43.89 billion in its books of accounts as on June 30, 2017, up from $42.63 billion as on December 31, 2016.

Dividend

In a separate press release on July 17, 2017, Southern Co.'s Board of Directors declared a regular quarterly dividend of $0.58 per share of its common stock, marking the Company's 279th consecutive quarters of dividend payment. The dividend is payable on September 06, 2017, to shareholders of record as of August 21, 2017.

Outlook

For full year FY17, Southern Co. projects adjusted earnings in the range of $3.02 per share to $2.90 per share. The Company has also provided adjusted EPS guidance for Q3 FY17 and anticipates EPS to be $1.06 per share.

Stock Performance

On Friday, August 18, 2017, the stock closed the trading session at $48.30, slightly up 0.79% from its previous closing price of $47.92. A total volume of 4.85 million shares have exchanged hands, which was higher than the 3-month average volume of 4.64 million shares. Southern's stock price advanced 2.07% in the last one month and 1.05% in the past six months. The stock is trading at a PE ratio of 73.63 and has a dividend yield of 4.80%. The stock currently has a market cap of $48.20 billion.

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