SOUTHERN COMPANY Reports 20.2% Decline in Revenue for Q2 2023
August 26, 2023
🌥️Earnings Overview
On August 3 2023, SOUTHERN COMPANY ($NYSE:SO) reported their financial results for the quarter ending June 30 2023, showing total revenue of USD 5.8 billion, a 20.2% decrease from the same period in the previous year. Net income was also lower at USD 0.84 billion, representing a 24.3% decline year-on-year.
Analysis
Analyzing SOUTHERN COMPANY‘s fundamentals, GoodWhale has made the following conclusions. According to Star Chart, SOUTHERN COMPANY is strong in dividend and medium in growth, profitability and asset. SOUTHERN COMPANY has an intermediate health score of 4/10, which speaks to its ability to pay off debt and fund future operations. We classify SOUTHERN COMPANY as a “rhino”, a type of company that has achieved moderate revenue or earnings growth. This makes SOUTHERN COMPANY ideal for investors looking for long-term gains and stability, as opposed to those who prefer short-term profits. Investors who want to benefit from reliable dividends may also find SOUTHERN COMPANY a good investment. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southern Company. More…
| Total Revenues | Net Income | Net Margin |
| 27.65k | 3.08k | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southern Company. More…
| Operations | Investing | Financing |
| 5.62k | -9.26k | 4.14k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southern Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 137.12k | 102.47k | 28.13 |
Key Ratios Snapshot
Some of the financial key ratios for Southern Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.4% | -0.4% | 20.8% |
| FCF Margin | ROE | ROA |
| -10.8% | 11.7% | 2.6% |
Peers
In the electric utility industry, there is intense competition between Southern Co and its competitors: NextEra Energy Inc, Avangrid Inc, Entergy Corp. These companies are all vying for market share in the Southeast region of the United States.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc is a leading clean energy company with operations in 27 states and Canada. The company has a market cap of 143.98B as of 2022 and a Return on Equity of 4.45%. NextEra Energy Inc is committed to providing clean, safe and reliable energy to its customers. The company has a diversified portfolio of generation assets that includes wind, solar, nuclear and natural gas. NextEra Energy Inc is also one of the largest electric utilities in the United States.
– Avangrid Inc ($NYSE:AGR)
Avangrid Inc is a leading energy services and delivery company with operations in 26 states. It has a market cap of 15.4 billion and a return on equity of 3.84%. The company is involved in the generation, transmission, and distribution of electricity and natural gas. It also provides renewable energy solutions.
– Entergy Corp ($NYSE:ETR)
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
Summary
Southern Company reported a 20.2% decline in total revenue and 24.3% decrease in net income for the quarter ending June 30 2023 as compared to the same period of the previous year. The announcement of these financial results on August 3 2023 caused the stock price to move down. Investors should take into account this weakened performance when considering investing in Southern Company.
It is important to consider the long-term outlook of the company and assess potential risks before making any decisions. Analysts should look at the company’s current financial statements, review the competitive landscape, and monitor the macroeconomic environment in order to determine whether the current share price represents a good investment opportunity.
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