Valued at a market cap of $101.8 billion, The Southern Company (SO) is a utility company that generates, transmits, and distributes electricity. The Atlanta, Georgia-based company develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Thursday, Jul. 31.
Ahead of this event, analysts expect this utility giant to report a profit of $0.99 per share, down 9.2% from $1.09 per share in the year-ago quarter. The company has topped Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion. In Q1, SO’s EPS of $1.23 outpaced the forecasted figure by 2.5%.
For fiscal 2025, analysts expect SO to report a profit of $4.28 per share, up 5.7% from $4.05 per share in fiscal 2024. Furthermore, its EPS is expected to grow 7% year-over-year to $4.58 in fiscal 2026.
SO has outpaced the S&P 500 Index's ($SPX) 12.1% uptick over the past 52 weeks, with its shares up 16%. However, it has slightly lagged behind the Utilities Select Sector SPDR Fund’s (XLU) 16.6% return over the same time frame.
On May 1, Southern Company delivered better-than-expected Q1 results, yet its shares plunged marginally post the release. Due to higher retail and wholesale electric revenues and growth in its natural gas sales, the company’s overall operating revenue improved 17% year-over-year to $7.8 billion, surpassing the consensus estimates by 11%. Moreover, its adjusted EPS of $1.23 advanced 19.4% from the same period last year and topped Wall Street estimates by 2.5%.
Wall Street analysts are moderately optimistic about SO’s stock, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, eight recommend "Strong Buy," one indicates a "Moderate Buy," 11 advise "Hold,” and one suggests a “Strong Sell” rating. The mean price target for SO is $95.29, which indicates a 2.8% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
