Southern Company: Full-Year Earnings Reach $4.4B in 2024

Southern Company (NYSE: SO) has released its financial results for the fourth quarter of 2024, reporting earnings of $534 million, translating to 49 cents per share. This marks a decline from the $855 million, or 78 cents per share, recorded during the same period in 2023. Despite the dip in quarterly earnings, the company saw an increase in full-year earnings for 2024, amounting to $4.4 billion, or $4.02 per share, compared to $4.0 billion, or $3.64 per share, in the previous year.

Excluding certain items, the adjusted earnings for the fourth quarter were $544 million, or 50 cents per share, compared to $700 million, or 64 cents per share, in the fourth quarter of 2023. For the full year, the adjusted earnings were $4.4 billion, or $4.05 per share, up from $3.65 per share in 2023. Operating revenues for the fourth quarter reached $6.3 billion, representing a 4.9% increase from the $6.0 billion reported in the same quarter of the previous year.

The full-year operating revenues rose to $26.7 billion, up by 5.8% from $25.3 billion in 2023. The company attributes its annual revenue growth to higher utility revenues, which were partially offset by increased non-fuel operations and maintenance expenses, interest expenses, depreciation and amortization, and income taxes. Southern Company’s CEO, Christopher C. Womack, commended the efforts of team members across the company, emphasizing the delivery of exceptional value to customers.

Southern Company Reports Mixed Results for Fourth-Quarter 2024

The financial results of Southern Company for the fourth quarter fell short of market expectations. Analysts had anticipated earnings per share (EPS) of $0.52, but the company reported an EPS of $0.49. However, the company’s reported revenue of $6.3 billion was slightly above the expected $6.31 billion. The shortfall in earnings can be attributed to various factors, including increased non-fuel operations and maintenance expenses and higher interest expenses.

Compared to the previous year’s fourth quarter, Southern Company’s earnings per share decreased by 29 cents, from $0.78 to $0.49. The company’s traditional electric operating companies saw a significant decline in earnings, contributing to the overall decrease in EPS. However, Southern Company Gas showed a positive impact, partially offsetting the decline. Despite the quarterly challenges, the company achieved a year-over-year increase in full-year EPS, rising from $3.64 in 2023 to $4.02 in 2024.

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Southern Company Remains Optimistc on Outlook

Southern Company remains optimistic about its future performance. The company is committed to meeting the growing energy needs of local economies sustainably. CEO Christopher C. Womack highlighted the company’s dedication to delivering clean, safe, and affordable energy while advancing its goal of achieving net-zero greenhouse gas emissions by 2050. Southern Company plans to continue investing in infrastructure and innovative technologies to support its growth and sustainability objectives.

The company has provided earnings guidance for the upcoming year, which will be discussed further during a financial analyst call scheduled for today. During this call, Womack and Chief Financial Officer Daniel S. Tucker will provide insights into the company’s earnings and offer a general business update. Southern Company remains focused on maintaining its industry-leading position through strategic investments and initiatives aimed at enhancing customer satisfaction and operational efficiency.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.