Southern Co (NYSE:SO) early Wednesday posted mixed fourth quarter earnings results, as profit missed expectations but revenue far surpassed Wall Street’s view.
The Atlanta-based electric utility operator reported adjusted Q4 EPS of $0.24, which was $0.06 worse than the Wall Street consensus estimate of $0.30.
Revenues rose 45.2% from last year, due mostly to acquisitions, to $5.18 billion. Analysts had expected a much lower revenue total of $4.42 billion, but it as immediately clear whether to two results were comparable.
SO noted that Southern Company Gas accounted for $1.11 billion of the massive revenue increase.
The company commented via press release:
“2016 was a year of tremendous accomplishment for Southern Company,” said Chairman, President and CEO Thomas A. Fanning. “The acquisitions of Southern Company Gas, PowerSecure and a 50 percent equity interest in Southern Natural Gas have served to lengthen and strengthen our low-risk, customer focused business model and are expected to further support our ability to deliver regular, predictable and sustainable long-term earnings and dividend growth.”
SO operates a number of vertically integrated electric utilities in several states, including Alabama Power, Georgia Power, Gulf Power, and Mississippi Power. It also recently added Southern Company Gas to its portfolio.
In total, Southern boasts 44,000 megawatts of generating capacity and 1,500 billion cubic feet of combined natural gas consumption and throughput
volume. It serves over 9 million total customers through its many subsidiaries.
Southern Co shares were unchanged in premarket trading Wednesday. Year-to-date, SO has declined -1.85%, versus a 5.80% rise in the benchmark S&P 500 index during the same period.