In This Article:
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Adjusted EPS: $1.23 per share, $0.20 higher than Q1 2024 and $0.03 above estimate.
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Second Quarter EPS Estimate: $0.85 per share.
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Weather-Normal Retail Electricity Sales: 0.3% lower than Q1 2024.
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Data Center Sales Growth: Up 11% year-over-year.
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Office Buildings Sales Growth: Up 4% year-over-year.
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Transportation Sector Sales Growth: Up 4% year-over-year.
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Capital Investment Announcements: Over $11 billion with more than 4,000 new jobs in electric service territories.
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Long-Term Debt Issued: $2.2 billion by state-regulated electric subsidiaries year-to-date.
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Junior Subordinated Notes Issued: Approximately $2.4 billion year-to-date.
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Common Stock Forward Contracts: $1 billion through ATM program.
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Annual Common Dividend Increase: $0.08 per share, raising the annualized rate to $2.96 per share.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Southern Co (NYSE:SO) reported adjusted earnings for the first quarter above estimates, with year-over-year growth across all major businesses.
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The Southeast region, where Southern Co operates, continues to show economic resilience with robust economic development activity.
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Southern Co's state-regulated electric utilities are experiencing customer growth, particularly in data centers, which saw an 11% year-over-year increase in sales.
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The company has a strong financial outlook, supported by disciplined execution and constructive regulatory frameworks.
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Southern Co's Board of Directors approved an $0.08 per share increase in the annual common dividend, marking the 24th consecutive annual increase.
Negative Points
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Southern Co faces policy uncertainty regarding tariffs, which could lead to potential cost increases of 1% to 3% in their base capital plan.
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The company's adjusted EPS estimate for the second quarter is lower than the previous year, partly due to weather-related impacts and timing of transactions.
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Retail electricity sales were 0.3% lower than the first quarter of 2024, driven by reduced usage in the residential customer class.
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Higher operating costs, depreciation, and amortization partially offset the positive earnings impact from investments and weather-related factors.
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Southern Co's financing activities include significant debt issuance, which may impact future financial flexibility and interest costs.
Q & A Highlights
Q: Could you explain the factors driving the second-quarter EPS guidance of $0.85, which is lower than last year's second quarter? A: Daniel Tucker, CFO, explained that the two main factors are weather and timing. The previous year's second quarter had warmer-than-normal weather, which boosted results, and there was a significant transaction within the Georgia transmission system last year that won't recur this year.