Increased Energy Consumption Boosts Southern Company's Q2 Performance: Details
Portfolio Pulse from Lekha Gupta
Southern Company (NYSE:SO) reported a 12.4% Y/Y increase in Q2 2024 operating revenue to $6.463 billion, beating the consensus of $6.099 billion. Adjusted EPS improved to $1.10, surpassing the consensus of $0.92. Despite the positive results, SO shares are trading lower. The company reaffirmed its FY24 adjusted EPS guidance at $3.95-$4.05. Investors can gain exposure via SPDR Select Sector Fund – Utilities (NYSE:XLU) and Fidelity MSCI Utilities Index ETF (NYSE:FUTY).

August 01, 2024 | 1:25 pm
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NEUTRAL IMPACT
Investors can gain exposure to Southern Company through the Fidelity MSCI Utilities Index ETF (FUTY). The fund may see minor impacts due to Southern Company's performance.
FUTY includes Southern Company, so its performance may have a minor impact on the ETF. However, the overall impact is diluted due to the diversified nature of the ETF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Southern Company reported a strong Q2 2024 with a 12.4% Y/Y increase in operating revenue and an adjusted EPS of $1.10, beating estimates. Despite the positive results, shares are trading lower.
The strong financial performance with revenue and EPS beating estimates is positive. However, the stock trading lower suggests market concerns, possibly due to increased operating expenses or future guidance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Southern Company through the SPDR Select Sector Fund – Utilities (XLU). The fund may see minor impacts due to Southern Company's performance.
XLU includes Southern Company, so its performance may have a minor impact on the ETF. However, the overall impact is diluted due to the diversified nature of the ETF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50