Southern Company Reports Q2 FY2023 Earnings Results
August 21, 2023
🌥️Earnings Overview
For the quarter ending June 30, 2023, SOUTHERN COMPANY ($NYSE:SO) reported total revenue of USD 5.8 billion, representing a 20.2% decline from the same quarter in the previous fiscal year. Net income for the quarter was USD 0.84 billion, a decrease of 24.3% compared to the same period in FY2022.
Market Price
Southern Company recently reported its earnings results for the second quarter of FY2023, and the results weren’t as strong as expected. On Thursday, SOUTHERN COMPANY stock opened at $71.4 and closed at $68.6, down by 3.3% from the prior closing price of 71.0. The increase in revenue was driven mainly by higher residential and commercial customer sales, as well as higher natural gas sales.
Overall, despite the increase in revenues, Southern Company’s Q2 FY2023 earnings results fell short of expectations due to lower-than-expected net income and EPS figures. The company’s stock price dropped 3.3% following the release of the results, which shows that investors are not pleased with the performance of the company. Live Quote…
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% |
Analysis
At GoodWhale, we have conducted an analysis of SOUTHERN COMPANY’s wellbeing. Our Risk Rating shows SOUTHERN COMPANY is a medium risk investment in terms of financial and business aspects. We have detected two risk warnings in the company’s income sheet and balance sheet that potential investors should be aware of. If you are interested in learning more about these risks, sign up to GoodWhale and check out the analysis we have done. More…
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 their second quarter earnings for FY2023, showing a 20.2% decrease in total revenue to $5.8 billion and a 24.3% decrease in net income to $0.84 billion from the same quarter in the prior year. This caused the stock price to move down on the day of the earnings report, leaving investors uncertain about the company’s future prospects. Given the decrease in both revenue and profits, investors should do their own due diligence before investing in SOUTHERN COMPANY, taking into account the risks that come with investing in a company whose earnings have declined.
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