Southern Fourth Quarter Earnings Top Estimates, But Revenues Miss - InvestingChannel

Southern Fourth Quarter Earnings Top Estimates, But Revenues Miss

Electric utility Southern Co. (SO: Quote) reported Wednesday profit for the fourth quarter that grew from last year as the impact of milder weather was more than offset by the benefit from operating efficiencies leading to a decline in non-fuel operations and maintenance expenses. Earnings per share for the quarter topped analysts’ expectations, while quarterly revenues missed their estimates.

The Atlanta, Georgia-based company reported net income of $383 million or $0.44 per basic share for the fourth quarter, higher than $261 million or $0.30 per basic share in the prior-year quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the fourth quarter. Analysts’ estimates typically exclude special items.

The company noted that earnings for the latest quarter were influenced positively by reduced non-fuel operations and maintenance expenses and by other retail revenue effects across its traditional operating companies.

Operating revenues for the quarter remained flat with last year at $3.70 billion, and missed five Wall Street analysts’ consensus estimate of $4.53 billion.

Through its subsidiaries, Southern is engaged in the generation, transmission, distribution and sale of electricity in four Southeast states of Alabama, Georgia, Florida, and Mississippi.

Retail fuel revenues decreased to $1.03 billion from $1.14 billion in the year-ago quarter, while retail non-fuel revenues grew to $2.09 billion from $2.0 billion in the year-ago quarter.

Revenues for wholesale totaled $414 million, higher that $392 million in the comparable quarter a year ago, and other electric revenues increased $157 million to $147 million from last year.

In the fourth quarter, total energy sales to Southern’s customers in the Southeast, including wholesale sales, increased 2.4 percent to 42,543 Kilowatt-hours from last year’s 41,558 Kilowatt-hours. Total wholesale kilowatt-hour sales edged up 0.9 percent to 6,434.

Kilowatt-hour sales to retail customers in the company’s four-state service areas increased 2.6 percent from last year. Residential electricity sales grew 6.6 percent, electricity sales to commercial customers edged up 0.7 percent, and industrial energy sales improved 1.2 percent.

For fiscal 2012, the company reported net income of $2.35 billion or $2.70 per share, higher than $2.20 billion or $2.57 per share in the prior year. Excluding items, adjusted earnings was $2.68 per share, compared to $2.57 per share last year. Operating revenues declined 6.3 percent to $16.54 billion from last year.

Street was looking for full-year 2012 earnings of $2.62 per share, on annual revenues of $17.44 billion.

SO closed Tuesday’s regular trading session at $44.62, up $0.26 on a volume of 15.10 million shares

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by RTT Staff Writer

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