Southern Company Q1 Earnings Beat as Power Demand Grows

Power supplier The Southern Company SO reported first-quarter 2025 earnings per share (excluding certain one-time items) of $1.23, outperforming the Zacks Consensus Estimate of $1.20 and the year-ago adjusted profit of $1.03. The encouraging numbers reflect a gain in overall electricity sales, favorable weather conditions and lower-than-expected expenses. The utility reported revenues of $7.8 billion. The top line came in 17% higher than first-quarter 2024 sales and beat the Zacks Consensus Estimate of $7 billion.The firm guided earnings per share between $4.20 and $4.30 for this year and 85 cents for the June quarter. Further, Southern Company management stuck to its long-term EPS growth rate projection of 5-7% based on the 2024 adjusted EPS projection.Southern Company (The) Price, Consensus and EPS Surprise Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) QuoteOverall Sales BreakupSouthern Company’s wholesale power sales rose 6.8%, while there was a gain in retail electricity demand, too.Overall, there was an improvement in electricity sales and usage. In fact, total electricity sales during the first quarter increased 4.2% from the same period last year.Southern Company’s total retail sales moved up 3.4%, with residential, commercial and industrial sales increasing 6.4%, 3.3% and 0.5%, respectively.(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)Expenses SummarySouthern Company's operations and maintenance (O&M) cost rose 10% year over year to $1.6 billion. The utility’s total operating expense for the period — at $5.8 billion — increased 16.6% from the prior-year level and surpassed our estimate of $4.8 billion.Some Key Utility EarningsWhile we have discussed The Southern Company’s first-quarter results in detail, let’s see how some other utilities have fared this earnings season.PPL Corporation PPL reported operating EPS of 60 cents, which surpassed the Zacks Consensus Estimate of 53 cents by 13.2%. Total revenues of $2.50 billion surpassed the Zacks Consensus Estimate of $2.39 billion by 4.8%. The top line also increased 8.7% from the year-ago figure of $2.30 billion.PPL’s total operating expenses were $1.83 billion, up 4% from the year-ago quarter’s $1.76 billion. This was due to an increase in fuel and energy purchases. Operating income totaled $678 million, up 24.4% from the year-ago figure of $545 million. Interest expenses amounted to $190 million, up 6.1% from $179 million in the corresponding period of 2024. PPL reaffirmed its 2025 earnings projection in the range of $1.75-$1.87 per share.American Water Works Company AWK posted operating EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by nearly 1%. The bottom line improved 10.5% from the year-ago quarter's 95 cents. The year-over-year improvement in earnings was due to increased revenues from the implementation of new rates in the Regulated Businesses from capital and acquisition investments.Total operating expenses for the first quarter were $771 million, up 12.6% from the year-ago quarter’s $685 million, due to an increase in operating and maintenance expenses. American Water Works continues to expand operations through acquisitions and organic means. As of April 30, 2025, American Water Works added 2,150 customers through three closed acquisitions. Another 18 pending acquisitions, when completed, will add 37,400 customers.IDACORP, Inc. IDA reported earnings of $1.10 per share, which surpassed the Zacks Consensus Estimate of $1.03 by 6.8%. IDACORP’s earnings improved 15.8% from 95 cents per share in the year-ago quarter. The year-over-year improvement was due to strong customer growth and rate changes.Customer growth rate in IDACORP’s service areas increased 2.6% year over year for the 12 months ended on March 31, 2025. This, in turn, boosted IDACORP’s operating income by $7.3 million compared with the year-ago level. Total operating expenses were $377.5 million, down 5.5% from the year-ago quarter. The decline in operating expenses was due to lower purchased power and fuel expenses.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PPL Corporation (PPL): Free Stock Analysis Report Southern Company (The) (SO): Free Stock Analysis Report IDACORP, Inc. (IDA): Free Stock Analysis Report American Water Works Company, Inc. (AWK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks