Southern Co., the Atlanta-based utility company, announced its financial results for the third quarter of the year. Despite higher retail electricity sales, the company’s net income declined due to lower sales to industrial customers.
- Southern Co.’s net income for Q3 2023 reached $1.42 billion, compared to $1.47 billion in the same period last year.
- Earnings per share amounted to $1.29, down from $1.35 in the year-ago quarter.
- Adjusted for certain items, the company posted earnings of $1.42 per share, surpassing the average Wall Street estimate of $1.32 per share.
- The company’s revenue for the third quarter decreased to $6.98 billion from $8.37 billion in the previous year.
- The average analyst estimate for revenue was $8.23 billion, according to FactSet data.
- Residential electricity sales, which represent the largest segment in terms of kilowatt-hours, saw a 4.6% increase compared to the same period last year.
- Commercial sales rose by 3.7%.
- Industrial sales, on the other hand, experienced a decline of 2.3%.
Factors Affecting Earnings
Southern Co. attributed the adjusted earnings drivers for Q3 2023 to several factors:
- Warmer than normal weather at the company’s regulated electric utilities.
- Changes in rates and pricing strategies.
- Lower income taxes and non-fuel operations and maintenance costs.
- Partially offset by increased depreciation and amortization expenses.