Will Southern Company’s 3Q15 Revenues Beat Analyst Expectations?



Southern Company’s 3Q15 revenue estimate

Wall Street analysts have given a consensus estimate of ~$ 5.8 billion for Southern Company’s (SO) 3Q15 revenues. That’s an increase of ~9.4% compared to 3Q14 revenues. It is yet to be seen if SO will actually meet these estimates.

The expected ~31.8% increase in revenues in 3Q15 compared to 2Q15 revenues could be due to the positive influence of factors such as increased industrial sales and favorable weather conditions. This has been the trend in third quarters in the past couple of years and is expected to continue this year as well.

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Reported revenues vs. consensus estimates

During the last three quarters—4Q14, 1Q15, and 2Q15—Southern Company’s reported revenues have fallen short of consensus estimates by ~2.4%, ~2.3%, and ~2.3%, respectively. In 3Q14, reported revenues matched consensus estimates. By the end of October, we’ll know if 3Q15 reported revenues will match consensus estimates.

Peer comparison

Southern Company is part of the Utilities Select Sector SPDR ETF (XLU). Other companies that are part of XLU include Duke Energy (DUK), NextEra Energy (NEE), and AES Corporation (AES). In 2Q15, NextEra Energy beat consensus estimates by ~2.6% compared to Duke Energy and AES, which missed consensus estimates by ~6.8% and ~11.3%, respectively.

In the next article, we’ll take a look at Southern Company’s 3Q15 EPS (earnings per share) estimates.


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